Multiple Choice
Although some of the statements below are true of both normal goods and inferior goods, only one of the statements defines a normal good.Which one?
A) Normal goods are those for which the income effect is positive.
B) Normal goods are those for which the income effect is negative.
C) Normal goods are those for which the substitution effect overrides the income effect.
D) Normal goods are those for which the income effect overrides the substitution effect.
E) Normal goods are those for which demand increases when price increases.
Correct Answer:

Verified
Correct Answer:
Verified
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