Question

A product that enjoys rapidly growing demand over time is likely to be

Answer 1

Answer:

If the income elasticity of demand for a good is greater than one, the good is: a cyclical normal good. A product that enjoys rapidly growing demand over time is likely to be: a cyclical normal good.

Explanation:

Answer 2

A product that enjoys rapidly growing demand over time is likely to be:

A) a noncyclical normal good.

B) a cyclical normal good.

C) neither a normal nor an inferior good.

D) an inferior good.

This would be the full question.

However the correct answer would be :-

(B) cyclical normal good.

Cyclical normal good

The demand for normal goods increases when the economy is expanding, but decreases when the economy is contracting.

Cyclical stocks and their companies have a direct relationship to the economy, while non-cyclical stocks repeatedly outperform the market when economic growth slows.