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Which property distinguishes a normal good from an inferi... | QuestionStock

Representative image for question: Which property distinguishes a normal good from an inferior good?

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Economics

Which property distinguishes a normal good from an inferior good?

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Which property distinguishes a normal good from an inferior good?

Options:

Demand increases when the good's price rises
Demand increases as consumer income rises
Supply increases as consumer income rises
Demand is perfectly inelastic with respect to income

Correct answer: Demand increases as consumer income rises

Explanation: A normal good has positive income elasticity: as disposable income rises, quantity demanded rises; for example, demand for restaurant meals typically increases as incomes grow.

Created 2026-03-10T18:48:41.041Z. Updated 2026-03-10T18:48:41.041Z.