00:01
So here it looks like we're sort of doing a deep dive on demand curves.
00:04
And we start off with a diagram, right? we are given a diagram which is of course between quantity and price.
00:10
We are given two steep looking demand curves, d1 and d2.
00:14
And we are given four points, a, b, c, and d.
00:20
Wonderful.
00:21
So the first part here is if this good is inferior, right? it's baby formula, but that doesn't really matter here.
00:29
If inferior, then an income goes up, income goes up, what changes? what changes? so the key thing here is what the heck does inferior mean? and inferior means that if income goes up, quantity demanded, sorry, i should be very specific here, demand will go down, right? this is the definition of what an inferior good means...