Which of the following causes a decrease in demand for a normal good?
A) increase in price of a substitute
B) increase in price of a complement
C) increase in price
D) increase in income

Question

Quizplus · Accepted Answer

An increase in the price of a complement (a good that is consumed together with the normal good) makes the total cost of using both goods higher, leading to a decrease in demand for the normal good.

Which of the Following Causes a Decrease in Demand for a Normal