A normal good is one
A)the average consumer chooses to consume at a normal level.
B)the average consumer chooses to consume over other similar goods.
C)for which an increase in income increases consumption of the good.
D)for which an increase in income decreases consumption of the good.

Question

Quizplus · Accepted Answer

A normal good is a good for which an increase in income leads to an increase in the quantity demanded. This is because consumers have more purchasing power and are able to buy more of the good. Therefore, choice C, which states that an increase in income increases consumption of the good, correctly describes a normal good. Choices A, B, and D do not accurately describe a normal good.

A Normal Good Is One