For what type of good will the income effect due to a price decrease result in an increase in the quantity demanded?
A)A Giffen good.
B)An inferior good.
C)A public good.
D)A normal good.

Question

Quizplus · Accepted Answer

A normal good is one for which quantity demanded increases as income increases. Therefore, a price decrease will increase the purchasing power of consumers, resulting in an increase in demand for the good.

For What Type of Good Will the Income Effect Due