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    Inferior Good

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    The average 15-year old purchases 12 CDs and 15 cheese pizzas in a typical year. If cheese pizzas are inferior goods, would the average 15-year old be indifferent between receiving a $30 gift certificate at a local music store and $30 in cash? Explain.

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    Yes, if the cheese pizzas are inferior goods, then the 15-yr old will be indifferent. An inferior good is a good that decreases in demand when consumer income rises, unlike normal goods, for ...

    Solution Summary

    The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.