Question

What is a normal good?​ a. ​ A good whose demand increases when income decreases b. ​ A good whose demand decreases when income decreases c. ​ A good whose demand increases when price increases d. ​ Both B&C

Answer 1

Answer:

. ​ A good whose demand decreases when income decreases

Explanation:

A normal good is a product whose demand increases as consumers' income increases. The demand may also increase as economic conditions in the country improve. Similarly, when income decrease, the demand also declines.

As people income increase, the purchasing power increase. They prefer more costly goods than give them more satisfaction. Increased income tends to make consumers abandon goods that offer less utility.  Normal goods tend to be associated with customers in high-income.