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Goods for which demand rises as income rises  are ___. *1 pointA. complementary goodsB. inferior goodsC. normal goodsD. substitutes

Question

Goods for which demand rises as income rises are ___.

*1 point
A. complementary goods
B. inferior goods
C. normal goods
D. substitutes

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Solution

Break Down the Problem

  1. Identify the types of goods: complementary goods, inferior goods, normal goods, and substitutes.
  2. Determine the definition of each type of good concerning income changes.

Relevant Concepts

  • Normal Goods: Goods for which demand rises as income rises.
  • Inferior Goods: Goods for which demand falls as income rises.
  • Complementary Goods: Goods that are consumed together; the demand for one falls as the price of the other rises.
  • Substitutes: Goods that can replace each other; the demand for one increases when the price of the other rises.

Analysis and Detail

  • Since we're looking for the type of goods for which demand increases with rising income, we focus on normal goods.
  • As people's income increases, they are likely to purchase more of these goods, as they can afford to.

Verify and Summarize

In this case, the correct answer is normal goods because they increase in demand when consumer income rises.

Final Answer

C. normal goods

This problem has been solved

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