A normal good is one in which
A) the average consumer chooses to consume at a normal level.
B) the average consumer chooses to consume the good over other similar goods.
C) an increase in income increases consumption of the good.
D) an increase in income decreases consumption of the good.

Question

Quizplus · Accepted Answer

A normal good is a good for which an increase in income leads to an increase in demand. This is because the average consumer chooses to consume more of the good as they become richer and have more disposable income. Therefore, option C is correct. Options A, B, and D are incorrect because they do not accurately describe the characteristics of a normal good.

A Normal Good Is One in Which