Practice Quiz

AP Microeconomics

Category - Microeconomics

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What is the type of good for which there is actually more demand as a person’s income rises?
  1. Private good
  2. Public good
  3. Substitute good
  4. Normal good
Explanation
Answer - D - There is more demand for a normal good as a person’s income rises.

Key Takeaway: In general, there are two different types of goods: normal and inferior. A normal good is defined as a good for which there is an increase in demand as consumer income rises. The opposite is true for an inferior good: as consumer incomes rise, demand decreases.
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