Jessica's income increased by 10% this year.In the same year,Jessica's quantity demanded of milk increased by 10% and her quantity demanded for bread increased by 5%.This means that,for Jessica:
A)both milk and bread are inferior goods.
B)both milk and bread are normal goods.
C)milk is an inferior good,but bread is a normal good.
D)milk is a normal good,but bread is an inferior good.

Question

Quizplus · Accepted Answer

When an individual's income increases and their demand for a product also increases, those products are considered normal goods. Since Jessica's demand for both milk and bread increased with her income, both are normal goods.

Jessica's Income Increased by 10% This Year