A normal good is defined as one:

A) whose amount demanded will increase as its price decreases.

B) whose amount demanded will increase as its price increases.

C) whose demand curve will shift leftward as incomes rise.

D) the consumption of which varies directly with incomes.

Question

Business

Diamond Pham

27 June, 12:44

A normal good is defined as one:

A) whose amount demanded will increase as its price decreases.

B) whose amount demanded will increase as its price increases.

C) whose demand curve will shift leftward as incomes rise.

D) the consumption of which varies directly with incomes.

+5

Answers (1)

Know the Answer?

Anne Blackburn · Answer 1

The correct answer is letter "D": the consumption of which varies directly with incomes.

Explanation:

Normal goods are those with quantities demanded increasing when consumers' income increases. Quantity demanded and increase have a directly proportional relationship. Consumer staples such as foods, drugs, and fuel are considered normal goods.

The opposite of normal goods are inferior goods which have decreasing quantities demanded in front of increases in consumers' income.

A normal good is defined as one:A) whose amount demanded will increase as its price decreases.B) whose amount demanded will increase as its price increases.C) whose demand curve will shift leftward as incomes rise.D) the consumption of which varies directly with incomes.

A normal good is defined as one:

A) whose amount demanded will increase as its price decreases.

B) whose amount demanded will increase as its price increases.

C) whose demand curve will shift leftward as incomes rise.

D) the consumption of which varies directly with incomes.