If your income increases and your consumption of bagels increases, bagels are considered a(n):
A) negative good.
B) positive good.
C) inferior good.
D) normal good.

Question

Quizplus · Accepted Answer

Bagels are considered a normal good because as income increases, the demand for bagels increases. This implies that bagels are a product for which demand rises when income rises, which is characteristic of normal goods.

If Your Income Increases and Your Consumption of Bagels Increases