The demand for normal goods
A)Rises when incomes fall.
B)Rises when incomes rise.
C)Falls when incomes rise.
D)Shifts to the right when incomes fall.

Question

Quizplus · Accepted Answer

Normal goods are those whose demand increases as consumer incomes rise. This is because as consumers have more disposable income, they are able to purchase more of these goods, leading to an increase in demand. Similarly, when incomes fall, consumers have less disposable income and are therefore likely to purchase fewer normal goods, leading to a decrease in demand.

The Demand for Normal Goods