-The increase in the demand for widgets, shown in the figure above, is the result of an increase in income. Therefore, widgets
A) are a normal good.
B) are an inferior good.
C) are elastically demanded.
D) are inelastically demanded.

Question

-The increase in the demand for widgets, shown in the figure above, is the result of an increase in income. Therefore, widgets
A) are a normal good. 
B) are an inferior good. 
C) are elastically demanded. 
D) are inelastically demanded.

Quizplus · Accepted Answer

An increase in income leading to an increase in demand for widgets indicates that widgets are a normal good, as demand for normal goods rises with an increase in consumer income.

-The Increase in the Demand for Widgets, Shown in the Figure