Question

describe how normal goods tie into following example. a person just received a raise at work, and he is also in the process of buying a new car. what type of car would he be more likely to purchase?

Explanation:

Normal goods are those for which demand increases as income rises. When the person received a raise (an increase in income), his purchasing - power increased. He is more likely to purchase a more expensive or higher - quality car as a normal good, since with more income, he can afford a better product in the car market.

Answer:

He is more likely to purchase a more expensive or higher - quality car.