When Robert's Income Increases,he Buys More New Clothes

question 158

True/False

When Robert's income increases,he buys more new clothes.If the income elasticity is positive,indicating a positive relationship between his income and his demand,then new clothes are a normal good for Robert.

---

Definitions:

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at varying price points, at a specific moment in time.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Consumer Surplus

Describes the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.