For a(n) _______ good, an increase in income will lead to an increase in _______ .

Question

Quizplus · Accepted Answer

For a normal good, an increase in income leads to an increase in consumption as the consumer can afford to buy more of the good. For an inferior good, an increase in income leads to a decrease in consumption as the consumer can now afford to buy a better substitute. An increase in income does not necessarily affect supply, which is determined by factors like production costs and technology.

For A(n) _______ Good, an Increase in Income Will Lead