Question

The demand for most products varies directly with changes in consumer incomes. Such products are known as Multiple Choice complementary goods. competitive goods. inferior goods. normal goods.

Answer 1

Answer:

The correct answer is letter "D": normal goods.

Explanation:

Normal Good is any good or service that sees its increase in demand as a result of an increase in income. Normal goods are defined as having an income elasticity coefficient of demand (percentage change in quantity demanded by the percentage change in price) which is lower than one (1) but is still a positive number.

Consumer staples such as food, drugs, beverages, and basic household products are considered normal goods.