If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, good x can be considered a. A public good b. A private good c. An inferior good d. A normal good

Question

Business

Lynn

22 August, 08:58

If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, good x can be considered a. A public good b. A private good c. An inferior good d. A normal good

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Answers (1)

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Rayne · Answer 1

The correct answer is letter "D": A normal good.

Explanation:

A normal good is any product or service seeing an increase in demand as a consequence of an increase in income. Normal in this scenario, does not refer to product quality or type. Normal goods oppose to inferior goods which demand decrease when individuals' income increase.