A positively-sloped Engel curve implies a(n):
A)inferior good.
B)normal good.
C)Giffen good.
D)marginal good.

Question

Quizplus · Accepted Answer

A positively-sloped Engel curve indicates that as income increases, the demand for the good also increases. This is characteristic of a normal good, rather than an inferior or Giffen good. "Marginal good" is not a term used in economics. A positively-sloped Engel curve indicates that as income increases, the quantity demanded of the good also increases. This is indicative of a normal good.

A Positively-Sloped Engel Curve Implies A(n)