Necessities and luxuries are both types of normal goods.

Name: Necessities and luxuries are both types of normal goods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Necessities are goods that are essential for survival or basic living standards, while luxuries are goods that are not essential for survival or basic living standards but provide pleasure or comfort. Both necessities and luxuries are considered normal goods because as income increases, the demand for both of them increases as well.

Necessities and Luxuries Are Both Types of Normal Goods