Asked by zartasha kousar on May 31, 2024
Verified
A normal good is one:
A) whose amount demanded will increase as its price decreases.
B) whose amount demanded will increase as its price increases.
C) whose demand curve will shift leftward as incomes rise.
D) for which the consumption varies directly with income.
Normal Good
A good for which demand increases as the income of the consumer increases, all other factors being equal.
- Comprehend how shifts in consumer income influence the demand for both normal and inferior goods.
Verified Answer
TN
Trang NguyenJun 05, 2024
Final Answer :
D
Explanation :
A normal good is one for which demand increases as income increases, meaning people buy more of the good as they become wealthier. Choices A and B describe the law of demand and a Giffen good, respectively, while C describes an inferior good.
Learning Objectives
- Comprehend how shifts in consumer income influence the demand for both normal and inferior goods.
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