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Suppose an Individual Experiences a Permanent Increase in Income

Question 48

Multiple Choice

Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month. This information suggests that dinners at restaurants for this individual are


A) an inferior good.
B) a substitute good.
C) a normal good.
D) both complimentary and inferior.

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