If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, good...
Question:
If your income goes up by {eq}2\% {/eq} and, in response, the quantity demanded of good x rises by {eq}3\% {/eq}, good x can be considered:
a. An inferior good.
b. A normal good.
c. A public good.
d. A private good.
Consumers:
In microeconomic theory, consumers are people who buy various services and products to gain utility. Consumers consume a variety of goods like normal goods, private goods, public goods, inferior goods, and so on.
Answer and Explanation: 1
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View this answerThe correct answer is option B: A normal good.
A normal good is a kind of good, product, or service whose quantity demanded rises as the income of...
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Normal Good in Economics: Definition & Examples
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Chapter 3 / Lesson 11
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Explore normal goods in economics. Read the definition of a normal good and see how it differs from an inferior good. See examples of normal and inferior goods.
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