If an Increase in Income of 10% Causes an Increase

question 255

Multiple Choice

If an increase in income of 10% causes an increase in quantity demanded of 20% for a good, the good is a(n) _____ good.

• A) normal
• B) luxury
• C) inferior
• D) abnormal

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Definitions:

Verbal Phrase

A verbal phrase is a group of words expressing an action or a state of being, often used in mathematics to translate words into algebraic expressions or equations.

Divided

A mathematical operation where one quantity is evenly distributed into parts or groups.

Algebraic Expression

A combination of variables, numbers, and at least one arithmetic operation, without an equality sign.

Rectangle

A quadrilateral with four right angles and opposite sides that are parallel and equal in length.