Multiple choice

What do we call the goods whose demand tends to increase when there is increase in consumer’s income and tends to decrease when there is decrease in consumer's income?

  1. Inferior goods

  2. Necessary goods

  3. Normal goods

  4. Substitute goods

  5. Complementary goods

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Normal goods are those goods whose demand increase with the increase in income and vice-versa.