Question

Premium beer is likely considered A. to have perfectly elastic demand. B. a normal good. C. to have inelastic demand. D. an inferior good.

Answer 1

B. a normal good

Step-by-step explanation:

Premium beer is likely considered a normal good. A normal good is defined as a good that experiences an increase in its demand due to a rise in consumers' income, otherwise, demand is relatively low. That is because premium beer is more expensive than regular beer and not a necessity. Therefore, even though consumers may prefer the premium beer they will not purchase it if money is tight.