Question

4. If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the

demand for the good.
a. True
b. False

Answer 1

b. False

Step-by-step explanation:

A good is said to be 'normal' by economists if an increase in consumers' income bring about increase in demand for the good.

In other words, consumers will buy more of those goods when they have sufficient money due to availability of income.

Example of normal good is when the demand for household appliance like TVs or expensive clothes increases due to increase in income of consumers.

Whereas for an inferior good, demand for such good decreases as consumers' income increases.