Something Is a Normal Good If the Demand for the Good

question 59

Multiple Choice

Something is a normal good if the demand for the good

• A) increases as the consumer's income increases.
• B) increases as the consumer's income decreases.
• C) decreases if the price of a substitute good increases.
• D) increases if the price of a complement good increases.
• E) decreases as the income of the consumer increases.

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Definitions:

Deforestation

The large-scale removal of trees from forests or jungles, often to clear land for agricultural, residential or commercial development.

Overgrazing

The depletion of vegetation due to continuous feeding by an excessive number of grazing animals, leading to land degradation.

Water Scarcity

A situation in which the available water resources are insufficient to meet the demands of a region.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the Earth's surface, including rain, snow, sleet, and hail.