Asked by
Emily Brooke
on Dec 17, 2024Verified
A good is a normal good if the consumer buys less of it when
A) his income falls.
B) the price of the good rises.
C) the price of a substitute good falls.
D) his income rises.
Normal Good
A good whose demand increases when consumer income rises and decreases when consumer income falls, ceteris paribus.
Consumer
A person or collective that buys products or services for their own consumption and not for making or selling them.
Income
The revenue brought in, consistently over time, from professional endeavors or investments.
- Comprehend how variations in income affect the consumption patterns of both normal and inferior goods.
Verified Answer
JK
Learning Objectives
- Comprehend how variations in income affect the consumption patterns of both normal and inferior goods.