If an individual's income increases, then the demand for a normal good will:
a. decrease.
b. increase.
c. remain constant.
d. rotate.
e. fall to zero.
b
Economics
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If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then according to the averaging equation, the value of price elasticity of demand in absolute terms is
a. 0.33 b. 2.33 c. 0.25 d. 3 e. 0.66
Economics
If the demand for textbooks is inelastic, then an increase in the price of textbooks will
a. increase total revenue of textbook sellers. b. decrease total revenue of textbook sellers. c. not change total revenue of textbook sellers. d. There is not enough information to answer this question.
Economics