A normal good is one for which
A) demand increases as income increases.
B) demand increases as income decreases.
C) the demand curve is horizontal.
D) demand increases as the price of a substitute increases.

Question

Quizplus · Accepted Answer

A normal good is a product or service for which demand increases as consumer income increases. This is because as consumers' income increases, they have more disposable income to spend on goods and are therefore more likely to purchase normal goods. For example, if a person's income increases, they may be more likely to purchase a better quality car or clothing.

A Normal Good Is One for Which