If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is a:
A)neutral good.
B)normal good.
C)necessity.
D)complement.

Question

Quizplus · Accepted Answer

If an increase in income leads to an increase in demand for peanut butter, then peanut butter is a normal good. This means that as income increases, people will buy more peanut butter, which is a common behavior observed for most normal goods.

If an Increase in Income Leads to in an Increase