Which of the following is true of a normal good? The quantity demanded falls as the price rises. • The quantity demanded falls as the price falls. O The demand curve shifts to the right as the price falls. O The quantity demanded rises as the price rises.

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Question
Which of the following is true of a normal good?
The quantity demanded falls as the price rises.
• The quantity demanded falls as the price falls.
O The demand curve shifts to the right as the price falls.
O The quantity demanded rises as the price rises.
Answer

The quantity demanded falls as the price rises.

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A normal good is a good for which the demand increases as the price decreases and decreases as the price increases. This means that the quantity demanded falls as...
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