Question

If Max experiences a increase in his income, then we would expect Max's demand for

a) each good he purchases to remain unchanged.
b) normal goods to decrease.
c) normal goods to increase.
d) inferior goods to decrease.

Answer 1

A rise in income would generally lead to an increase in Max's demand for normal goods. On the other hand, his demand for inferior goods would decrease.

Step-by-step explanation:

A rise in income would generally lead to an increase in Max's demand for normal goods. Normal goods are products whose demand rises when income rises. On the other hand, inferior goods are products whose demand falls when income rises. Therefore, we would expect Max's demand for inferior goods to decrease if his income increases.