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The Owner of a Kayak Tour Business Has Been Looking

Question 207

Multiple Choice

The owner of a kayak tour business has been looking over the latest data from the Census, which reported that income in the area where she is based has increased by 20%. Assuming that participating in a kayak tour is a normal good, which of these would be an accurate prediction of what could happen to kayak tour sales, ceteris paribus?


A) Since incomes have increased by 20% in the area, the owner can expect to see a decrease in sales, ceteris paribus.
B) Since incomes have increased by 20% in the area, the owner can expect to see no change in sales, ceteris paribus.
C) Since incomes have increased in the area, the owner can expect to see a 20% increase in sales, ceteris paribus.
D) Since incomes have increased by 20% in the area, the owner can expect to see an increase in sales, ceteris paribus.

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