00:01
Hey guys and welcome to another economics tutorial where we're going to be looking at some more of the fundamentals of demand.
00:07
So we're going to ask ourselves a question based on what i've drawn here.
00:11
If the income increases, or if your income increases, is it necessary that your demand will also increase? usually, yes, that is the case.
00:21
In the case of normal goods, this is true.
00:25
So normal goods include things like clothes, for example.
00:30
As you get more money, you're probably going to buy more clothes.
00:33
You're going to have more pairs of clothes in your closet.
00:36
But this doesn't necessarily always have to be true.
00:40
Sometimes the opposite can actually be true.
00:44
And that's the case of inferior goods, where as your income increases, your demand actually decreases.
00:58
So some examples of an inferior good, this is usually like goods that you would have...