If a decrease in income leads to in a decrease in the demand for ice cream,then ice cream is
A)a normal good.
B)a neutral good.
C)a complement.
D)a necessity.

Question

Quizplus · Accepted Answer

A normal good is a good for which demand increases when income increases and decreases when income decreases. If a decrease in income leads to a decrease in the demand for ice cream, then it is a normal good. This is because people will have less disposable income to spend on luxury or non-essential items such as ice cream.

If a Decrease in Income Leads to in a Decrease