The Consumption of Normal Goods Will Increase Because of the Income

question 91

True/False

The consumption of normal goods will increase because of the income effect when their prices increase.

---

Definitions:

Normative Statement

An opinion-based statement that reflects beliefs about what is good or desirable and prescribes or recommends specific policies.

Health Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses.

Efficient Market

A market in which prices fully reflect available information, allowing for optimal allocation of resources.

Positive Statement

An objective statement that can be tested, amended, or rejected by referring to the available evidence.