Suppose that the market demand curve for cauliflower is a function of the price of cauliflower, the price of broccoli, and income. If the partial derivative of quantity demanded of cauliflower with respect to income is positive,:
A) neither cauliflower nor broccoli is a normal good.
B) cauliflower and broccoli are both normal goods.
C) broccoli is a normal good.
D) cauliflower is a normal good.

Question

Quizplus · Accepted Answer

The positive partial derivative of quantity demanded of cauliflower with respect to income indicates that as income increases, the demand for cauliflower also increases. This characteristic defines cauliflower as a normal good, as demand for normal goods increases with an increase in income. The information provided does not specify the relationship between broccoli's demand and income, so no conclusion can be drawn about whether broccoli is a normal good.

Suppose That the Market Demand Curve for Cauliflower Is a Function