What is the difference between inferior goods and normal goods
What will be an ideal response?
Answer:
Inferior Goods - a good whose demand decreases when consumer income rises
EX) Store-brand cereal
Normal Goods - goods for which the demand rises as consumer income rises
EX) Cinnamon Toast Crunch (Boujee cereal)
You might also like to view...
Use the figure below to answer the following question.
An increase in quantity supplied caused by a change in price is depicted by a
A. movement from point y to point x. B. shift from S1 to S2. C. movement from point x to point y. D. shift from S2 to S1.
Most flat tax proposals call for exempting income to a certain minimum level
a. True b. False Indicate whether the statement is true or false
If you are at an all-you-can-eat buffet dinner and you are considering whether to eat another dessert, you, as a rational consumer should decide to eat the desert
A. no matter what because you want to get more for your money. B. if it brings you more pleasure than the price you paid for the meal. C. if it brings you any pleasure at all. D. if it brings you as much pleasure as the desert costs if it is ordered a la carte.
According to the following figure, demand is unitary elastic at P = $________.
A. 20 B. 10 C. 25 D. 15 E. 5