ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Items that people tend to buy more of when their incomes increase. This is true of most goods and services.
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Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money.
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Items that may replace each other when used or consumed.
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Items that are almost always consumed or used together.
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Detailed explanation-1: -A normal good is a good that experiences an increase in demand due to an increase in a consumer’s income. Normal goods have a positive correlation between income and demand. Examples of normal goods include food, clothing, and household appliances.
Detailed explanation-2: -Normal goods are those whose demand increases as people’s incomes and purchasing power rise. As such, a normal good will have a positive income elasticity of demand coefficient but it will be less than one.
Detailed explanation-3: -For most goods, called normal goods, if consumer incomes increase, demand will increase and vice versa.
Detailed explanation-4: -With an increase in income, consumers will purchase larger quantities, pushing demand to the right, and causing the demand curve to shift right.