The distinction between a normal and an inferior good is A. normal goods are used for the same purposes while inferior goods are used together. B. when income increases, demand for a normal good decreases while demand for an inferior good increases. C. when income increases, demand for a normal good increases while demand for an inferior good falls. D. normal goods are used together while inferior goods are used for the same purposes.

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Business

Jewel

29 September, 00:26

The distinction between a normal and an inferior good is A. normal goods are used for the same purposes while inferior goods are used together. B. when income increases, demand for a normal good decreases while demand for an inferior good increases. C. when income increases, demand for a normal good increases while demand for an inferior good falls. D. normal goods are used together while inferior goods are used for the same purposes.

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Armani Barnett · Answer 1

The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.

Explanation:

The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.