A report shows that sales at Target stores increased in 2016 compared to the previous year. Incomes grew between 2015 and 2016. Using that fact and the sales data given above means that Target definitely is selling goods and services that
A) are normal.
B) are inferior.
C) have an income elasticity of zero.
D) have an income elasticity of 1.

Question

Quizplus · Accepted Answer

When incomes increase and sales at Target also increase, it suggests that Target is selling normal goods, as the demand for normal goods rises with an increase in income.

A Report Shows That Sales at Target Stores Increased in 2016