Which of the following is true for a normal good when there is a decrease in consumer income?
The demand curve shifts to the left
The correct answer is option 2. For a normal good, a decrease in income leads to a decrease in demand. This causes the demand curve to shift to the left, indicating a reduction in quantity demanded at each price level.
Important Questions from Consumer behaviour
In relation to theory of consumers behaviour, which of the following statements is INCORRECT?
The concept of consumer surplus was propounded by __________.
Goods whose demand varies inversely with income are called ____ goods.
_____ have an income elasticity of demand of between 0 and +1.
According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.
