Based on Exhibit 4, assume a consumer has €100 to spend and must decide between purchasing socks or belts. How would you classify a pair of socks in this scenario?

Explanation

Option A refers to goods for which demand decreases as income rises, known as inferior goods. Option B describes Giffen goods, which are rare and exhibit upward-sloping demand curves. Option C correctly identifies socks as normal goods, meaning demand increases with income. Option D is incorrect as option C is the appropriate classification.