Demand for a normal good will increase at existing prices if:
A) there is a decrease in the population size.
B) there is an increase in income.
C) there is a decrease in wealth.
D) there is an increase in interest rates.

Question

Quizplus · Accepted Answer

A normal good is a good for which an increase in income leads to an increase in demand. Therefore, if there is an increase in income, the demand for a normal good will increase at existing prices. The other options, such as a decrease in population size or wealth, or an increase in interest rates, do not necessarily have an impact on the demand for a normal good at existing prices.

Demand for a Normal Good Will Increase at Existing Prices