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24 June, 09:53

If demand for personal computers increases as a result of an increase in income, a. personal computers must be a normal good b. personal computers must be an inferior good c. personal computers must be a complement d. the substitutes for personal computers must be inferior goods e. the substitution effect is larger than the income effect

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  1. 24 June, 12:20
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    Answer: Personal computers must be a normal good.

    Explanation:

    Normal good is a type of commodity available in a market, in which the commodity's demand increases as income of the buyers increase. The normal goods posses a positive income elasticity of demand (where demand is directly proportional to income).
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