Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
When consumer income increases, people generally have more money to spend, which can lead to an increase in demand for normal goods. Normal goods are items that people buy more of when they have more income, like clothing or dining out. Even if the prices of complementary goods, such as burgers and fries, change, the overall demand for normal goods can still rise because consumers feel richer. For example, if someone gets a raise and decides to buy more new clothes, they might still buy the same amount of fries whether or not the price goes up. This shows that higher income can boost demand for normal goods, even if other prices fluctuate.
Detailed Explanation
It's not always true that higher income means more demand for normal goods. Other options are incorrect because This answer suggests that income changes always increase demand.
Key Concepts
Demand elasticity
Income effect
Complementary goods
Topic
Understanding Demand and Supply
Difficulty
hard level question
Cognitive Level
understand
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