Asked by
Shaikha Almansoori
on Dec 11, 2024
Verified
A normal good is defined by economists to be a good
A) with a negatively-sloped demand curve.
B) that is purchased by at least 75 percent of the population.
C) that is bought by consumers with normal tastes.
D) whose demand increases when incomes increase.
E) whose demand decreases when incomes increase.
Normal Good
A good that has a positive income elasticity, so that as consumer income rises, demand for the good rises, too.
- Classify goods into normal, inferior, and luxury categories by examining their income elasticity of demand.
Verified Answer
KF
Learning Objectives
- Classify goods into normal, inferior, and luxury categories by examining their income elasticity of demand.