An increase in income
A)increases the demand for turnips if a turnip is an inferior good.
B)increases the demand for turnips if a turnip is a normal good.
C)increases the supply of turnips.
D)decreases the demand for turnips if turnips have a very low price.
E)decreases the supply of turnips.

Question

Quizplus · Accepted Answer

When income increases, the demand for normal goods (goods for which demand increases as income increases) increases. As turnips are a normal good, an increase in income will lead to an increase in the demand for turnips.

An Increase in Income