Household incomes rise and people buy more new cars. New cars are ther…

Question

Household incomes rise and people buy more new cars. New cars are therefore a:

Accepted Answer

B. Normal good

1. The test is what happens to demand when income rises.
2. Here demand rises alongside income.
3. So new cars are a normal good.
_Source: OpenStax Principles of Microeconomics 3e, Chapter 3, Demand and Supply._

Answer

Neutral good

Answer

Nominal good

Answer

Notional good

Household incomes rise and people buy more new cars. New cars are therefore a:

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