A(n)_______________ good is one in which as income rises or falls,there is no change in the demand for the good.
A) normal
B) inferior
C) neutral
D) substitute
E) complementary

Question

Quizplus · Accepted Answer

A neutral good is one where changes in income do not affect the demand for the good. In contrast, a normal good has an increase in demand as income increases and a decrease in demand as income decreases, while an inferior good has the opposite effect. Substitute goods refer to goods that consumers can use to replace another similar product, while complementary goods are products that are usually consumed together.

A(n)_______________ Good Is One in Which as Income Rises or Falls,there