If televisions are normal goods,a fall in income will
A)Increase the demand for cars
B)Decrease the demand for cars
C)Have no effect on the demand for cars
D)None of the above

Question

Quizplus · Accepted Answer

As televisions are normal goods, a fall in income will lead to a decrease in demand for televisions. This decrease in income will also lead to a decrease in the demand for other normal goods, such as cars. Therefore, a fall in income will decrease the demand for cars.

If Televisions Are Normal Goods,a Fall in Income Will