If the quantity you buy of a good increases when your income increases, the good is clearly a(n)
A) essential good
B) inferior good
C) substitute good
D) complementary good
E) normal good

Question

Quizplus · Accepted Answer

When the quantity purchased of a good increases as income increases, the good is classified as a normal good. This is because normal goods have a positive income elasticity of demand, meaning people buy more of them as their income rises.

If the Quantity You Buy of a Good Increases When