If income increases and the 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, meaning that as income increases, the demand for bagels increases. The opposite of a normal good is an inferior good (option C), where as income increases, the demand for the good decreases. Option A (negative good) and B (positive good) are not relevant terms in economics.

If Income Increases and the Consumption of Bagels Increases, Bagels