If an increase in income leads to an increase in the demand for opera tickets, then operas are a(n) _____ good.

Question

Quizplus · Accepted Answer

A normal good is one for which an increase in income leads to an increase in demand, and this scenario matches that definition. Inferior goods are the opposite, where an increase in income leads to a decrease in demand, while superior goods are those for which an increase in income leads to a more than proportional increase in demand. Substitutes refer to goods that can be used in place of one another, which is not relevant to this scenario.

If an Increase in Income Leads to an Increase in the Demand