Asked by
Cesar Ponce
on Oct 09, 2024Verified
The demand for most products varies directly with changes in consumer incomes.Such products are known as:
A) complementary goods.
B) competitive goods.
C) inferior goods.
D) normal goods.
Normal Goods
Goods whose demand increases when consumer income rises, and falls when consumer income decreases.
Consumer Incomes
The total amount of income earned by consumers, influencing their spending patterns and demand for goods and services.
Complementary Goods
Goods that are consumed together because the use of one enhances the use of the other, such as computers and software.
- Identify the impact of variations in income on the purchasing patterns and demand for various goods, including normal and inferior products.
- Examine how consumer preferences and income levels influence market demand formation.
Verified Answer
AC
Learning Objectives
- Identify the impact of variations in income on the purchasing patterns and demand for various goods, including normal and inferior products.
- Examine how consumer preferences and income levels influence market demand formation.