alleryStart learning →With rising income, demand for most goods generally behaves how?
AMoves opposite to income
BIs unrelated to income
CFalls to zero at once
DIncreases with income
Answer & Solution
Correct answer: D. Increases with income
Higher income raises purchasing power, so there is generally a direct relationship with demand.
Keep practising Law of Demand
Browse all Law of Demand questions for CA Foundation, or explore more Business Economics topics.
Related questions
A shop sells 200 units at Rs 50 each. Price rises to Rs 60 and sales fall to 160. What is A perfectly inelastic demand curve for a good is typical when the good has what?Keynesian economics is sometimes called what?The party with fewer opportunities to avoid a tax usually bears what share of its burden?When demand is perfectly inelastic, who bears the burden of a per-unit tax?The price of tea rises 10% and coffee demand rises 5%. What is the cross elasticity of cofWhich elasticity measures the effectiveness of a campaign in generating new sales?Cross elasticity of demand relates the quantity demanded of good A to the change in what?