An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that

Question

Quizplus · Accepted Answer

The economist's prediction assumes that bicycles are normal goods, meaning that as consumer incomes increase, their demand for bicycles will also increase. This implies that bicycles are a product for which demand increases as income rises, indicating that they are a normal good. Therefore, the best choice is D.

An Economist for a Bicycle Company Predicts That, Other Things