1. For some products, purchases tend to decrease as the buyer's income increases. Such products are known as: Normal goods Inferior goods Inverse goods common goods 2. Which factor will increase the demand for a product? An unfavorable report on the value of the product A decrease in the price of a substitute product A decrease in the number of buyers A decrease in the price of a complementary product
Added by Nabila M.
Step 1
The products whose purchases decrease as the buyer's income increases are known as Inferior goods. These are goods that consumers demand less of as their income increases. Show more…
Show all steps
Your feedback will help us improve your experience
Crystal Wang and 87 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
QUESTION Consumer surplus may decrease when there is an imposition of a binding price floor in the market. There is a decrease in the production cost of the good. There is an increase in the number of sellers of the good. The sellers expect the price of the good to be lower next month. QUESTION 2 Price Demand Quantity Refer to the above Figure. Assuming the price is P1, the consumer surplus would be: BDF b, BDG ABC d, FAG
Rashmi S.
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD