MC17. What is the difference between a normal good and an inferior good?
A. Normal goods are luxury items, while inferior goods are necessities.
B. Normal goods are goods for which demand increases as income increases, while inferior goods are goods for which demand decreases as income increases.
C. Normal goods are goods for which demand decreases as income increases, while inferior goods are goods for which demand increases as income increases.
D. There is no difference between a normal good and an inferior good.
Answer:B
MC17. What is the difference between a normal good and an inferior good?
A. Normal goods are luxury items, while inferior goods are necessities. B. Normal goods are goods for which demand increases as income increases, while inferior goods are goods for which demand decreases as income increases. C. Normal goods are goods for which demand decreases as income increases, while inferior goods are goods for which demand increases as income increases. D. There is no difference between a normal good and an inferior good.