When Adam's income increases, he purchases more tickets to Broadway musicals than he did before his income increased. For Adam, Broadway musicals are a(n)
A)normal good.
B)inferior good that is not a Giffen good.
C)Giffen good.
D)optimal good.

Question

Quizplus · Accepted Answer

When Adam's income increases, he purchases more tickets to Broadway musicals, which indicates that Broadway musicals are a normal good for Adam. This means that as Adam's income increases, his demand for Broadway musicals increases as well.

When Adam's Income Increases, He Purchases More Tickets to Broadway