Share
Explore BrainMass

Income and Demand

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.

Solution Preview

Normal goods are those for which demand increases with income. Most goods are in this category. People want more nice clothes and new automobiles, ...

Solution Summary

Normal vs inferior goods

$2.19