As income rises the quantity purchased of normal goods and the quantity purchased of inferior goods .

A) rises;rises
B) falls;falls
C) rises;falls
D) falls;rises

Question

As income rises the quantity purchased of normal goods ____ and the quantity purchased of inferior goods ____.A) rises;risesB) falls;fallsC) rises;fallsD) falls;rises

Zayda Rodriguez · Accepted Answer

Final Answer : C, Explanation :  As income rises, people tend to purchase more of normal goods, which are of higher quality and are preferred over inferior goods. Therefore, the quantity purchased of normal goods rises. In contrast, people tend to purchase less of inferior goods as their income rises, since they can afford better quality substitutes. Thus, the quantity purchased of inferior goods falls.

As income rises the quantity purchased of normal goods and the quantity purchased of inferior goods .

A) rises;rises
B) falls;falls
C) rises;falls
D) falls;rises

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