Asked by
Tsz Wai Cheung
on Oct 12, 2024
Verified
If a person's income falls,then the demand for a normal good will
A) increase.
B) decrease.
C) remain the same.
D) fall to zero.
Normal Good
A product or service for which demand increases as consumer income increases, and vice versa, demonstrating a direct relationship between income and demand.
Income
The financial gain earned by an individual or entity, typically through wages, investments, or other forms of revenue.
Demand
The desire to own goods or services combined with the ability and willingness to pay for them.
- Gain an understanding of the distinction between inferior and normal goods and how changes in income levels influence their demand.
Verified Answer
EJ
Learning Objectives
- Gain an understanding of the distinction between inferior and normal goods and how changes in income levels influence their demand.