As incomes increase, which of the following would likely see the largest increase in demand?
A) gum
B) luxury cars
C) hot dogs
D) thrift store purchases

Question

Quizplus · Accepted Answer

Luxury cars are typically considered a normal good, meaning that as incomes increase, the demand for such items also increases significantly. This contrasts with inferior goods, where demand decreases as income rises. Luxury cars, being high-value items, are more sensitive to income changes than everyday items like gum or hot dogs, or thrift store purchases, which might not see as significant an increase in demand with rising incomes.

As Incomes Increase, Which of the Following Would Likely See