If we observe that when consumers' incomes rise by 10%, the quantity demanded of ice cream increases by 5%, then ice cream is an inferior good.

Question

Quizplus · Accepted Answer

This observation indicates that ice cream is a normal good because the quantity demanded increases as consumers' incomes rise. Inferior goods, conversely, would see a decrease in quantity demanded as incomes increase.

If We Observe That When Consumers' Incomes Rise by 10