Question

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. This means that video games are a(n) _____ good.
inferior

normal

Answer 1

Answer:  NORMAL good

Normal goods are goods or products for which demand increases as consumer income increases.  So if consumer incomes are increasing and demand for more video games goes along with that, this demonstrates video games are a "normal good."

Inferior goods are goods or products for which demand decreases when consumer income goes up.  Or demand for them increases when consumer incomes go down.  In other words, they are seen as cheaper options to fulfill a need or desire.  In our example, maybe we'd say playing cards or board games could be "inferior goods" in comparison to video games.  If video games become too expensive for average consumer incomes, they may turn to cheaper options for entertainment like playing card games or board games.  "Inferior goods" doesn't mean the goods themselves are of inferior quality, but simply that they are more affordable ways of fulfilling some consumer purpose (such as entertainment).