What effect does a rise in income have on demand? increases demand for normal goods decreases demand for normal goods increased prices on goods decreased prices on goods

The correct answer would be option A, Increases demand for normal goods.

Explanation:

With the increase in the level of income of people in an economy, the demand of the normal goods also increases. Normal goods are the products or services whose demand increases with the increase in the level of income of the people in that economy. Normal goods can be Pasta, wheat, Rice, etc whose demand increases due to the increase in the income levels of people, because may be their need of such products were high but due to their lower income levels, they restricted themselves to a fixed portion of such goods and now with the increase in the income level, they would buy such foods more which would increase the demand of normal goods.

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