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Miguel Jauregui
on Nov 04, 2024

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A good whose demand is directly related to income is a(n)

A) normal good.
B) inferior good.
C) regular good.
D) new good.

Normal Good

A normal good is one whose demand increases as consumer income rises and decreases when consumer income falls, holding other factors constant.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

  • Discern the differences among normal, inferior, complementary, and substitute goods.
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Trent LaflareNov 10, 2024
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