If your income rises by 15 percent and, as a result, you buy more steak, then steak is a(n)
A) substitute.
B) normal good.
C) complement.
D) inferior good.

Question

Quizplus · Accepted Answer

When your income rises and you purchase more of a certain good, it is considered a normal good. In this case, since the increase in income led to an increase in the demand for steak, it is a normal good.

If Your Income Rises by 15 Percent And, as a Result