Consider a commodity x and its price p. One observes that an increase in p always leads to a decrease in the quantity demanded of x. This means that the good x is
(a) Ordinary
(b) Normal
(c) Ordinary and Normal
(d) Homothetic
The correct answer is (a) Ordinary.
In economics, a normal good is one for which the quantity demanded increases as income increases, while an inferior good is one for which the quantity demanded decreases as income increases.
On the other hand, a good is considered ordinary when the quantity demanded decreases as the price increases.
Since the question states that an increase in price leads to a decrease in the quantity demanded of good x, it indicates that this good is ordinary, but it does not provide any information about its income elasticity. Therefore, the correct answer is (a) Ordinary.