Shannon just received a significant pay raise at work. Because of this pay increase, she has started to eat more sushi. In this example, sushi is what type of good?a substitute gooda complementary goodan inferior gooda normal good
Question
Shannon just received a significant pay raise at work. Because of this pay increase, she has started to eat more sushi. In this example, sushi is what type of good?a substitute gooda complementary goodan inferior gooda normal good
Solution
In this example, sushi is a normal good. A normal good is a type of good for which demand increases when income increases, and falls when income decreases but price remains constant. Since Shannon started eating more sushi after receiving a pay raise, it shows that her demand for sushi increased with an increase in income. Therefore, sushi is a normal good in this context.
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