Asked by Georgia Faulkner on Jul 04, 2024
Verified
If the demand for green tea increases as income increases, green tea is a(n)
A) complementary good.
B) substitute good.
C) normal good.
D) inferior good.
Normal Good
A type of good whose demand increases when consumer income rises and decreases when consumer income falls.
- Distinguish between normal, inferior, complementary, and substitute goods.
Verified Answer
DK
Danka KnezevicJul 07, 2024
Final Answer :
C
Explanation :
Green tea is considered a normal good because its demand increases as income increases. This is characteristic of normal goods, where consumers buy more of the good as their income rises.
Learning Objectives
- Distinguish between normal, inferior, complementary, and substitute goods.