Normal Goods and Inferior Goods

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

What else does the normality of a good depend on?

Tastes and preferences, and age.

Example of a normal good

A car, as income rises the demand for cars increase.

Inferior Good

A good for which demand decreases as income rises and demand increases as income falls.

Normal Good

A good for which demand increases as income rises and demand decreases as income falls.

Example of changes in normality due to age and preference

Junk food for young children is a normal good as an increase in pocket money will increase demand. As children get older, tastes change and sweets may become an inferior good.

Example of an inferior good

Public transport, as income rises the demand for public transport rather than private travel decreases.

Usually, an increase in disposable income means that the demand curve shifts rightwards, but what does this depend on?

Whether the good is a normal good or inferior good.


Kaugnay na mga set ng pag-aaral

Prep U Ch. 27 Management of Patients With Coronary Vascular Disorders

View Set

UGBA 10 Operations and Sustainability

View Set

C777 Web Development Applications Post-Assessment

View Set

CH. 44 Digest&GastroTxModalities

View Set

Google Cloud Associate Engineer - 367

View Set

Introduction to IOT final exam -Blake Lenzing

View Set