Which characterization applies to a normal good
A)The average consumer chooses to consume the good at a normal level.
B)The average consumer chooses to consume a normal good over a substitute good.
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 or consumption. Therefore, choice C is correct as it states that an increase in income increases consumption of the good. Choices A and B are incorrect because they do not specifically relate to the definition of a normal good. Choice D is incorrect because it suggests that an increase in income leads to a decrease in consumption, which is not true for a normal good.

Which Characterization Applies to a Normal Good