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Which of the following will not decrease the demand for a normal good?
  • a)
    The price of a substitute decreases
  • b)
    Increase in income
  • c)
    The price of a complementary good increases
  • d)
    price of the good decreases
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following will not decrease the demand for a normal good?...
With an increase in income, the demand for normal goods increase.
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Most Upvoted Answer
Which of the following will not decrease the demand for a normal good?...
Increase in Income
Increased income leads to an increase in purchasing power which in turn leads to an increase in demand for normal goods. This is because consumers will have more disposable income to spend on goods and services, including normal goods.

The price of a substitute decreases
When the price of a substitute decreases, consumers are more likely to switch to the cheaper substitute, leading to a decrease in demand for the original normal good.

The price of a complementary good increases
If the price of a complementary good increases, consumers are less likely to purchase both goods together, leading to a decrease in demand for the normal good as well.

The price of the good decreases
When the price of a normal good decreases, consumers are more likely to buy more of it since it becomes more affordable. This increase in affordability leads to an increase in demand for the normal good.
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Which of the following will not decrease the demand for a normal good?a)The price of a substitute decreasesb)Increase in incomec)The price of a complementary good increasesd)price of the good decreasesCorrect answer is option 'B'. Can you explain this answer?
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