If incomes increase, then the ____ in the market for luxury cars as normal goods ____.
A) supply; decreases
B) supply; increases
C) demand; increases
D) deman
E) both supply and deman

Question

Quizplus · Accepted Answer

Luxury cars are considered normal goods, meaning as incomes increase, demand for them would also increase. This would result in a shift to the right in the demand curve, indicating an increase in demand. There is no reason for a change in supply in this scenario.

If Incomes Increase, Then the ____ in the Market for Luxury