What kind of relationship exists between income and demand in case of normal goods?

Options

A. There is no impact of income on demand
B. Sometime there is a direct and sometimes an inverse relationship
C. There is a direct relationship
D. There is an inverse relationship

Answer

C

Explanation

In the case of normal goods, income and demand are directly related, which means an increase in income will cause demand to rise and a decrease in income causes demand to fall.