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When the demand for a good increases with an increase in income, such a good is called
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- Superior good
- Giffin good
- Inferior good
- Normal good
- Superior good
Correct Option: A
A superior good is a product that people demand more of as they their incomes grow. These are products that are generally more expensive and rarer like diamonds and classic cars. Such a good must possess two economic characteristics: it must be scarce, and, along with that, it must have a high price.
