If the demand for higher education increases as incomes increase, then higher education is:
A)a normal good.
B)a neutral good.
C)a necessity.
D)an inferior good.

Question

Quizplus · Accepted Answer

A normal good is a product or service for which demand increases as consumer income increases. As incomes increase, consumers have more disposable income to spend on higher education to improve their career prospects and earn higher salaries, leading to an increase in demand for higher education. This is consistent with the scenario described in the question, suggesting that higher education is a normal good.

If the Demand for Higher Education Increases as Incomes Increase