Question

A normal good is defined as one:

Answer 1

Answer:

The correct answer is letter "D": the consumption of which varies directly with incomes.

Explanation:

Normal goods are those with quantities demanded increasing when consumers' income increases. Quantity demanded and increase have a directly proportional relationship. Consumer staples such as foods, drugs, and fuel are considered normal goods.

The opposite of normal goods are inferior goods which have decreasing quantities demanded in front of increases in consumers' income.