When income falls, the demand for televisions, which are a normal good, will also fall, reflecting the direct relationship between income and demand for normal goods.
- If televisions are a normal good, then when income falls, the demand for televisions will fall.
- This is because, in economics, a normal good is one where the demand increases as income increases and, conversely, the demand decreases as income decreases.
- When income falls, consumers have less purchasing power and will typically cut back on purchasing goods that are not essential, like televisions.
- It is important to note that the exact change in demand can vary from person to person based on individual preferences.
- However, the general trend for normal goods is a reduction in consumption with a decrease in income.
- In contrast, an inferior good is one for which demand increases when income falls.
- Televisions, being normal goods, do not fit this category, so the correct answer to the multiple-choice question is that the demand for televisions will fall when income falls.