ECON 201- Ch.7 Section 5 Questions

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause

A rightward shift in the demand curve for bus travel

The difference between normal and inferior goods is that

An increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward

If a good is an inferior good, this implies that

As incomes rise, the demand for the good will fall

If people buy less chewing gum at every price when their incomes fall, then

Chewing gum is a normal good

A good is classified as inferior if

Consumers buy less when income rises

In the aftermath of the Great Recession (falling incomes) in 2008, McDonalds saw sales revenue increase. What is the best explanation for this result?

McDonalds is an inferior good

Which one of these goods is most likely to be an inferior good for most people with incomes over 100,000?

Natural Light Beer

If Francis experiences a decrease in his income, we would expect that Francis's demand for

Normal goods will decrease

If the demand for a product increases as the result of a decline in income, it can be concluded that the

Product is an inferior good

Since value is subjective, a good can be normal for one person and inferior for another

True