Although some of the statements below are true of both normal goods and inferior goods, only one of the statements defines a normal good.Which one?
A)Normal goods are those for which the demand curve slopes downward.
B)Normal goods are those for which indifference curves slope downward.
C)Normal goods are those whose demand curves shift rightward when income increases.
D)Normal goods are those whose indifference curves shift rightward when income increases.
E)Normal goods are those for which demand decreases when price increases.

Question

Quizplus · Accepted Answer

Normal goods are those whose demand curves shift rightward when income increases. This means that as people's income increases, they are willing and able to buy more of the normal goods than before. Inferior goods, on the other hand, have demand curves that shift leftward when income increases.

Although Some of the Statements Below Are True of Both