The recent recession has hurt several industries due to a decline in demand by households. Thinking of the relationship between income and demand discuss the following questions:
1. What are "normal" goods? Give an example in our current economy.
2. What are "inferior" goods? Give an example in our current economy.© BrainMass Inc. brainmass.com June 19, 2018, 6:16 pm ad1c9bdddf
Normal goods are those for which demand increases with income. Most goods are in this category. People want more nice clothes and new automobiles, ...
Normal vs inferior goods