If income rises by 10 percent and the quantity sold of a particular vehicle falls by 7 percent,then this particular type of vehicle is
A)A normal good.
B)An inferior good.
C)An irregular good.
D)A substandard good.

Question

Quizplus · Accepted Answer

When income increases, people are likely to buy more expensive vehicles, so the fact that quantity sold drops indicates that this particular vehicle is an inferior good.

If Income Rises by 10 Percent and the Quantity Sold