During the recession of 2007-2009,several casual dining restaurants experienced a drop in business as many consumers chose to become more in spending their declining incomes.The decrease in demand due to falling income indicates that meals sold in casual restaurants are considered
A) normal goods.
B) inferior goods.
C) complementary goods.
D) substitute goods.

Question

Quizplus · Accepted Answer

During a recession, consumers' incomes typically decrease, leading them to cut back on spending for normal goods, which are goods for which demand decreases as income decreases. Casual dining meals are considered normal goods because their demand dropped as consumers' incomes fell.

During the Recession of 2007-2009,several Casual Dining Restaurants Experienced a Drop