An economist estimates that with every 20 percent increase in income, the quantity of grapes purchased rises by 11.2 percent. From this information one would conclude that grapes are:
A) a luxury.
B) not demanded.
C) an inferior good.
D) a normal good.

Question

Quizplus · Accepted Answer

A normal good is one where the quantity demanded increases as income increases. Since the quantity of grapes purchased rises with an increase in income, grapes are considered a normal good.

An Economist Estimates That with Every 20 Percent Increase in Income