If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%, good x can be considered
A)An inferior good
B)A normal good
C)A public good
D)A private good

Question

​If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%, good x can be considered
A)​An inferior good
B)A normal good
C)A public good
D)​A private good

Quizplus · Accepted Answer

If the income and quantity demanded of a good have a positive relationship, it indicates that the good is a normal good. Therefore, option B is the correct answer as an increase in income by 2% results in a 3% increase in the quantity demanded of good x.

​If Your Income Goes Up by 2% And,in Response,the Quantity

If Your Income Goes Up by 2% And,in Response,the Quantity