Good X is a normal good if an increase in income leads to
a. an increase in the demand for good X.
b. a decrease in the supply for good X.
c. an increase in the supply for good X.
d. a decrease in the demand for good X.
Solution:
The correct answer is a. an increase in the demand for good X.
Normal goods are a type of goods whose demand shows a direct relationship with a consumer's income
a normal good is a type of a good which experiences an increase in demand due to an increase in consumer’s income.
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