When the demand for a good increases with an increase in income, such a good is called
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When the demand for a good increases with an increase in income, such a good is called
✓ Correct answer: d) Normal good
ExplanationNormal Good → Demand increases when income increases.Inferior Good → Demand decreases when income increases (people shift to better alternatives).Superior Good (Luxury) → High-quality goods, demand rises more than proportionally with income.Giffen Good → Special case of inferior goods where demand increases even when price rises (rare).Hence, the correct answer is "Normal Good".
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