Question

IF Francis experiences a decrease in his income, we could expect that, as a result, Francis's demand for:

a) Normal goods will increase
b) Inferior goods will decrease
c) Substitute goods will increase
d) Complementary goods will decrease

Answer 1

When a person's income decreases, their demand for normal goods generally decreases.

Step-by-step explanation:

When a person's income decreases, we can expect their demand for a) normal goods to decrease. Normal goods are goods that people buy more of as their income increases. Conversely, when income decreases, people generally buy less of these goods.