If the increase in the dollar volume of an individual consumer's purchases of a good is greater than the dollar volume increase in his or her income, then that good is said to be a superior good.

Question

Quizplus · Accepted Answer

A good is considered a superior good if the percentage of income spent on that good increases as income increases, not based on the dollar volume increase of purchases compared to the dollar volume increase in income. The scenario described does not necessarily indicate a superior good but rather an increase in spending on a good that outpaces income growth.

If the Increase in the Dollar Volume of an Individual