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.© BrainMass Inc. brainmass.com October 10, 2019, 3:49 am ad1c9bdddf
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 ...
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