If the demand for a good falls when income falls, then the good is called

Question

a. an ordinary good.
b. a normal good.
c. a regular good.
d. an inferior good.

Answer 1

If the demand for a good falls when income falls, then the good is called b. a normal good.

Normal goods are those for which demand increases when consumer income rises and decreases when income falls. Conversely, inferior goods see an increase in demand when consumer incomes fall.