Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Question
Chapter 3, Problem 4QFR
To determine
To explain the distinction between the inferior goods and normal goods.
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What is an inferior good?
Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the consumers? Explain.
what is the normal and an inferior good?
Chapter 3 Solutions
Principles of Economics (Second Edition)
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Similar questions
- Is a good which is inferior for one Consumer is inferior for all the other consumers also?arrow_forwardThe income of consumer has got increased and the consumer's demand for good X has also increased. What type of good is good X?arrow_forwardList and define the different kinds of goods. Give an example of eacharrow_forward
- Discuss it in your own understanding and then give example of the following: Utility and Demandarrow_forwardCan Giffin goods also be normal goods?arrow_forwardIf the consumer is consuming exactly two goods, and she is always spending all of her money, can both of them be inferior goods?arrow_forward
- Two students, Nick and Sofia, are discussing normal and inferior goods. Nick says that if Frodo buys more beer when the price of beer goes up, then beer must be an inferior good for Frodo. If, on the other hand, he buys less beer when the price of beer goes up, then beer must be a normal good for Frodo. Sofia disagrees: "Normal and inferior goods are about income changes, not price changes. Therefore, we do not have enough information: beer could be an inferior or normal good in either of these cases." Do you agree or disagree? Carefully explain your point of view. Support your argument with graphs of income, substitution and total effects (please put beer on the horizontal axis and the other goods on the vertical axis). Please assume that Frodo's preferences over beer and other goods are strictly convex and satisfy "more is better" assumption.arrow_forwardCan you please determine whether this statement is True or False, and explain why. Thank you Statement = "In order to be classified as a Giffen good, that good must be an inferior good. However, a good can be an inferior good but not a Giffen good."arrow_forward
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