Question

What name is given to goods where the quantity demanded rises as income rises?

Superior goods
Inferior goods
Normal goods
Complementary goods

Answer 1

`\Huge \boxed{\boxed{\textbf{Normal Goods}}}`

Step-by-step explanation:

'Normal goods' are goods where the quantity demanded increases with income. For ordinary goods, the demand elasticity of income is always positive, meaning that an individual's consumption of the good will rise in response to an increase in income. Normal goods include things like clothing, appliances for the home, and fundamental foods.

On the other hand, 'Inferior goods are those whose quantity demanded decreases as an individual's income increases. When two items are consumed together, 'complementary goods' increase the value of the other.

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Additional Comment

A superior good can also be the answer, but let me clarify that a good is only a normal good if the amount demanded of it rises with income, but not to the point where a larger portion of the budget goes to it.

#BTH1

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