As consumer incomes rise,the demand curve for Good X shifts to the right.Given this,Good X must be
A)Produced by a competitive firm
B)A high quality product
C)A substitute good
D)A normal good
E)An inferior good

Question

Quizplus · Accepted Answer

When consumer incomes rise, the demand for normal goods increases. As such, Good X must be a normal good. Therefore, choice D is the correct answer.

As Consumer Incomes Rise,the Demand Curve for Good X Shifts