Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 21 - Part VII - The Theory of Consumer Choice - Problems and Applications - Page 460: 12

Answer

If consumers don't buy less of a good when incomes increase, then consumers buy more of a good when incomes increase. Increased consumption of a good when incomes increase mean the good is a normal good.

Work Step by Step

If the good is a normal good, then when the price of the good increases, fewer units of the good will be purchased.
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