Goods that will have higher demand when consumer income rises.

Goods that will have higher demand when consumer income rises.

• A. Inferior goods
• B. Normal goods
• C. Substitute goods
• D. Complementary goods

Answer: (B)

This question tests how demand responds to changes in consumer income. When income rises, demand for normal goods increases because people have more purchasing power and buy more of these goods at any given price. Normal goods include everyday items that people commonly buy more of as they become wealthier, or they may opt for higher-quality options as their finances improve. Inferior goods, by contrast, tend to lose demand as income goes up because people switch to better alternatives. Substitutes and complements relate to the behavior of demand in response to changes in the prices or availability of other goods, not directly to income. So goods that will have higher demand when income rises are normal goods.

This question tests how demand responds to changes in consumer income. When income rises, demand for normal goods increases because people have more purchasing power and buy more of these goods at any given price. Normal goods include everyday items that people commonly buy more of as they become wealthier, or they may opt for higher-quality options as their finances improve. Inferior goods, by contrast, tend to lose demand as income goes up because people switch to better alternatives. Substitutes and complements relate to the behavior of demand in response to changes in the prices or availability of other goods, not directly to income. So goods that will have higher demand when income rises are normal goods.