Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Demand increases
B
Demand decreases
C
Demand remains constant
D
Demand becomes elastic
Understanding the Answer
Let's break down why this is correct
Answer
When consumer income increases, the demand for a normal good typically goes up. A normal good is something that people buy more of when they have more money to spend. For example, if people start earning higher salaries, they might choose to buy more organic food instead of regular food because they can afford it. This increase in demand means that more people want to buy the good at the same price, which can lead to higher sales for the company that makes it. So, when income rises, consumers feel more comfortable spending, and they often buy more of the normal goods they enjoy.
Detailed Explanation
When people earn more money, they can buy more things. Other options are incorrect because Some might think that higher income means less demand; It's a common mistake to think that income changes don't affect demand.
Key Concepts
demand
Topic
Supply and Demand Analysis
Difficulty
easy level question
Cognitive Level
understand
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