Which of the following is not a valid relationship?
A)For a normal good: demand for a good increases when income falls.
B)For a normal good: demand for a good decreases when income falls.
C)For an inferior good: demand for a good decreases when income rises.
D)For an inferior good: demand for a good increases when income falls.

Question

Which of the following is not a valid relationship?
A)​For a normal good: demand for a good increases when income falls.
B)​For a normal good: demand for a good decreases when income falls.
C)​For an inferior good: demand for a good decreases when income rises.
D)​For an inferior good: demand for a good increases when income falls.

Quizplus · Accepted Answer

For a normal good, demand typically increases as income increases, not decreases. Therefore, the statement that demand for a normal good increases when income falls is not valid.

Which of the Following Is Not a Valid Relationship