For vacations, restaurant meals, and smartphones, purchases tend to fall as buyers' incomes fall and rise as buyers' incomes rise. Such goods are known as:

Question

Quizplus · Accepted Answer

Normal goods are those for which demand increases as the income of buyers increases and decreases as the income of buyers decreases. Vacations, restaurant meals, and smartphones are examples of normal goods because people tend to buy more of these items when they have higher incomes.

For Vacations, Restaurant Meals, and Smartphones, Purchases Tend to Fall