Jim recently graduated from college.His income increased dramatically;from$5000 a year to $60,000 a year.Jim decides that instead of using the bus,he would buy a car.This implies that
A)The car is a normal goods for Jim
B)The car is an inferior goods for Jim
C)The bus and the car are complementary for Jim
D)Need information on the price of cars

Question

​Jim recently graduated from college.His income increased dramatically;from$5000 a year to $60,000 a year.Jim decides that instead of using the bus,he would buy a car.This implies that
A)​The car is a normal goods for Jim
B)The car is an inferior goods for Jim
C)The bus and the car are complementary for Jim
D)​Need information on the price of cars

Quizplus · Accepted Answer

With an increase in income, Jim decides to buy a car instead of using public transportation. Since he views the car as an upgrade over taking the bus and would rather have a car, the car is a normal good for Jim.

​Jim Recently Graduated from College

Jim Recently Graduated from College