Question

A goods can be considered a normal good if an increase in income of the consumer causes ______ in demand of the given good.

Options

• Increase

• No change

• Decrease

• less than proportionate increase

Answer 1

A goods can be considered a normal good if an increase in income of the consumer causes increase in demand of the given good.

Explanation:

A normal good is defined by demand increasing when income increases. No change or a decrease does not fit that definition.