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Question
State whether the following statement are true or false. Give reasons.
An increase in income leads to a rise in the demand for normal goods.
Options
True
False
Solution
This statement is true.
Explanation:
Demand for normal goods increases with an increase in income and decreases with a fall in the income of the consumer.
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RELATED QUESTIONS
Distinguish between Normal goods and Inferior goods.
The demand for ______ goods will increase with the increase in the consumers income.
Give two examples of normal goods.
State whether the following statement are true or false. Give reasons.
An increase in income leads to a rise in the demand for inferior goods.
State whether the following statement is true or false. Give reasons.
The commodity for which quantity demanded decreases with an increase in income is called inferior commodity.
