As income increases, consumers are less likely to purchase normal goods.

Question

Quizplus · Accepted Answer

As income increases, consumers are more likely to purchase normal goods. Normal goods are those in which demand increases as income increases. Examples of normal goods include luxury cars, designer clothing, and high-end electronics. Conversely, inferior goods are those in which demand decreases as income increases, such as low-quality food products or public transportation.

As Income Increases, Consumers Are Less Likely to Purchase Normal