Answer:
The correct answer is option c.
Explanation:
Normal goods can be defined as those goods whose demand increases with increase in income and vice versa. For instance, food, clothing, durable goods etc.
The normal goods have a positive income effect. This means that the demand for normal goods change in the same direction as change in income level. There is a direct relationship.
So, when there is a decrease in the income level, the demand for normal goods will also decline., as there is a decline in the purchasing power of the consumer.
