An increase in buyers' incomes
A) increases the quantity demanded of a good
B) decreases the quantity demanded of a good
C) increases the demand for a normal good
D) increases the demand for an inferior good
E) decreases the quantity demanded of a normal good

Question

Quizplus · Accepted Answer

An increase in the buyers' incomes leads to an increase in their purchasing power. As normal goods are superior goods, an increase in income leads to an increase in demand. Therefore, an increase in buyers' incomes increases the demand for a normal good.

An Increase in Buyers' Incomes