A Business Wire report shows that sales at Target stores increased in 2012 compared to the previous year. (Source: Business Wire, August 30, 2012) Incomes grew slightly between 2011 and 2012. Using that fact and the sales data given above means that Target definitely is selling goods and services that
A) are normal.
B) are inferior.
C) have an income elasticity of zero.
D) have an income elasticity of 1.

Question

Quizplus · Accepted Answer

Target's sales increased in 2012, and incomes grew slightly between 2011 and 2012. This means that Target is selling goods and services that are normal, as normal goods see an increase in demand as income rises.

A Business Wire Report Shows That Sales at Target Stores