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21 November, 18:12

The distinction between a normal and an inferior good is

A. normal goods are used together while inferior goods are used for the same purposes.

B. normal goods are used for the same purposes while inferior goods are used together.

C. when income increases, demand for a normal good decreases while demand for an inferior good increases.

D. when income increases, demand for a normal good increases while demand for an inferior good falls.

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  1. 21 November, 18:18
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    The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.

    Explanation:

    The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.
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