When economists say that some commodity is an inferior or normal good they are referring to the impact of:
a) a change in price on the quantity demanded
b) an increase in the quantity consumed on total utility
c) an increase in the quantity consumed on the marginal utility
d) a change in income on the quantity demanded

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Anne Gillian DueroLv10

28 Sep 2019

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Related questions

42) Which one of the following must be true if demand is income elastic? A) A small percentage increase in income will result in a large percentage increase in quantity demanded. B) A percentage change in price will lead to a larger percentage change in quantity demanded. C) The good is an inferior good. D) An increase in income will decrease the quantity demanded. E) A large percentage increase in income will result in a small percentage increase in quantity demanded.

How are the following calculations are made?

When income increased by 10%, the quantity of memberships of athletic clubs

increased by 15 percent, the quantity demanded of spring water increased by 5

percent, and the quantity demanded of soft drinks decreased by 2 percent. Use the

a. Is club membership a normal or an inferior good?

b. Is demand for club membership income elastic or income

inelastic?

c. Is spring water a normal or an inferior good?

d. Is soft drink a normal or an inferior good?

When a 5% increase in income causes a 3% drop in quantity demanded of a good.