In the case of a normal good,
A) demand curves always slope downward.
B) the income effect and substitution effect are in the same direction.
C) the Engel curve slopes upward.
D) All of the above.

Question

Quizplus · Accepted Answer

In the case of a normal good, all the statements are correct: demand curves generally slope downward due to the law of demand, the income effect and substitution effect both lead to an increase in quantity demanded when price decreases, and the Engel curve slopes upward indicating that as income increases, the quantity demanded of the good increases.

In the Case of a Normal Good