Which of the Following Increases the Demand for a Normal

question 9

Multiple Choice

Which of the following increases the demand for a normal good?

• A) a decrease in income
• B) an decrease in the price of a substitute
• C) an increase in the price of a complement
• D) the price of the good is expected to increase in the future

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Definitions:

Hypothesis

An if–then statement of conjecture that relates variables to one another and is used to reflect the general problem statement or question that is the motivation for asking a research question.

Directional Research Hypothesis

A research hypothesis that posits a difference between groups in one direction.

Nondirectional Research Hypothesis

A research hypothesis that posits a difference between groups but not in either direction. See Directional Research Hypothesis.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption that is tested against.