A good is normal for a consumer if
A) it is always consumed in a consistent quantity.
B) its consumption rises when income rises.
C) its consumption falls when income rises.
D) some minimal level of the good must be consumed to assure the consumer's survival.
E) the assumption of "more is always preferred to less" holds.

Question

Quizplus · Accepted Answer

A good is considered normal if its consumption rises when income rises. This means that as the consumer's income increases, they are willing and able to purchase more of the good, which is a sign of its perceived value to the consumer. This is in contrast to an inferior good, where as income rises, the consumer purchases less of it because they are able to afford higher-quality substitutes.

A Good Is Normal for a Consumer If