Normal and Inferior Goods
When demand changes due to an income change, we must investigate how the
quantity demanded reacts at the same price. If the quantity demanded of
a product or service moves in the same direction as income, we call it a
normal good or service. If it moves in the opposite direction, we call
it an inferior good or service. Watch this video on normal and inferior
goods.
Source: Khan Academy, https://youtu.be/wYuAwm-5-Bk
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Last modified: Wednesday, November 15, 2023, 4:00 PM