Asked by Chyniquia Johnson on May 09, 2024

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For most goods,purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

A) inferior.
B) direct.
C) normal.
D) indirect.

Normal Goods

Goods for which demand increases as consumer income rises, making them positively correlated with income changes.

  • Identify the distinctions between normal and inferior goods, and understand the impact of income variations on their demand.
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ST
Sapphire TuckerMay 14, 2024
Final Answer :
C
Explanation :
Goods that tend to see a rise in purchases with an increase in buyers' incomes and a fall with decreases in buyers' incomes are called normal goods. These are goods for which demand responds positively to changes in income. In contrast, inferior goods are those for which demand decreases when buyer incomes rise and increases when buyer incomes fall, while direct and indirect goods are not terms commonly used to describe the relationship between income and demand.