Pizza is a normal good if

Question

Quizplus · Accepted Answer

Pizza is considered a normal good because as income rises, people are more likely to consume more pizza as it is a relatively affordable and convenient food option. This causes an increase in demand for pizza, leading to a rightward shift in the demand curve. Choice B describes an inferior good, where demand rises as price falls. Choice C describes the typical shape of a demand curve, but does not determine if it is a normal or inferior good. Choice D describes the substitution effect, but does not determine if pizza is a normal or inferior good.

Pizza Is a Normal Good If