People eat at restaurants less often when their incomes fall because of a recession. Eating at restaurants must be
A) an inferior good.
B) a substitute for other goods.
C) a complement to other goods.
D) a normal good.
E) an inelastic good.

Question

Quizplus · Accepted Answer

Eating at restaurants is considered a normal good because demand for it decreases as income falls, which is characteristic of normal goods. People tend to spend more on such goods when their income is higher and cut back on them when their income is lower.

People Eat at Restaurants Less Often When Their Incomes Fall