Day: June 5, 2025

Alex trades as Stafford Reproduction, a manufacturer of classic furniture and furnishings for discerning clientele .

Alex predicts that if people’s incomes rise next year, then the demand for our furniture will increase.’

The accuracy of Alex’s prediction depends on whether the furniture and furnishings the company produces?

Select ONE answer:

1. Are normal goods
2. Have few substitutes
3. Have many complements
4. Have few complements

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > With normal goods, a rise in incomes will be accompanied by a rise in demand for them as opposed to a fall in demand for inferior goods. The existence of complementary goods and substitute goods has no effect in this context.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.