(Beem) Normal vs. Inferior Goods
If Corvettes are a normal good, an decrease in income will result in...
A decrease in the demand for Corvettes.
Belle loves eating at the House of Gerhard restaurant in Kenosha. Now that she has gotten a new job with a higher paycheck, she plans to eat there more often. What type of good would eating at House of Gerhard be?
Normal Good
James had to take a pay cut because his company is struggling. He used to take his family to the movies at Tinseltown, but now they will be renting movies from Family Video instead. What types of goods are movie theaters and movie rentals in this scenario?
Tinseltown (movie theater) = Normal Good Family video (movie rental) = Inferior Good
Walkman Watch expects a recession to occur. Knowing that a Walkman is a normal good, you predict that the demand for a Walkman...
will decrease.
If hot dogs are an inferior good, an decrease in income will result in...
A increase in the demand for hot dogs.
Terrance used to shop at Aldi for groceries. He just got a new job with a $10,000 raise. Now, he shops at Festival Foods instead. What type of good would shopping at Aldi be?
Inferior good
If bread is an inferior good, then what will happen in the market for bread as the consumer income increases?
The demand for bread will decrease.
If steak is a normal good, what will happen in the market for steak as the consumer income increases?
The demand for steak will increase.
Gruel is an inferior good. Hence, a decrease in people's incomes...
shifts the demand curve for gruel rightward.
