I refute this statement because income growth increases demand primarily for normal goods. For inferior goods, higher purchasing power causes consumers to switch to superior alternatives, reducing the demand for cheaper low-quality goods.
An increase in income always leads to a rise in demand for goods. Defend or refute, giving reasons for the same.
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I refute this statement because demand does not rise for every product when income increases. While higher household income raises the demand for normal and luxury goods, it reduces the demand for inferior or low-quality goods. As consumers experience rising purchasing power, they substitute low-grade commodities with better alternatives, proving that demand for certain products can actually decline as income rises.
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