Question

For normal goods, an increase in income will result in?

Answer 1

A normal good is a product whose demand increases when income increases and vice versa. An inferior good is a product whose demand falls when income rises.

Step-by-step explanation:

A normal good is a product whose demand increases when income increases and vice versa. When a person's income increases, they are more likely to buy luxury cars, vacations, and fine jewelry. However, there are some exceptions to this pattern, and these goods are called inferior goods, where the demand falls when income rises. Examples of inferior goods include generic brand groceries, used cars, and renting an apartment.