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Question
The demand for ______ goods will increase with the increase in the consumers income.
Options
Inferior goods
Substitute goods
Normal goods
Complementary goods
Solution
The demand for normal goods will increase with the increase in the consumers income.
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RELATED QUESTIONS
Distinguish between Normal goods and Inferior goods.
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 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.
