Asked by Felicia Rioza on May 06, 2024
Verified
Which statement is TRUE of a normal good?
A) When income increases,the demand for the good remains unchanged.
B) When income increases,the demand for the good decreases.
C) When income increases,the demand for the good increases.
D) Income and the demand are unrelated.
Normal Good
An item that sees a rise in desire when the income of buyers increases, and experiences a decline in demand when the income of buyers drops.
- Distinguish between normal goods and inferior goods, and examine the effects of changes in income on their demand levels.
Verified Answer
JS
Jasmine SmithMay 11, 2024
Final Answer :
C
Explanation :
A normal good is a good for which the demand increases when income increases. Therefore, when income increases, the demand for the good increases.
Learning Objectives
- Distinguish between normal goods and inferior goods, and examine the effects of changes in income on their demand levels.
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