hat kind of relationship exists between income and demand in case of normal goods ?There is no impact of income on demand Sometime there is a direct and sometimes an inverse relationship There is a direct relationship There is an inverse relationship
Question
hat kind of relationship exists between income and demand in case of normal goods ?There is no impact of income on demand Sometime there is a direct and sometimes an inverse relationship There is a direct relationship There is an inverse relationship
Solution
There is a direct relationship between income and demand in the case of normal goods. This means that as income increases, the demand for normal goods also increases. Conversely, if income decreases, the demand for normal goods also decreases. This is because normal goods are those goods that consumers demand more of as their income rises, holding constant the prices of other goods and services.
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