Question:
What are Normal, Inferior and Luxury Goods?
Author: eric_galvaoAnswer:
-Normal Goods are those that will be Demanded more as Real Income Increases. Therefore leading to Demand Curve shifting Rightwards -Inferior Goods are those that will be Demanded Less as Real Income Increases, as they may switch to more Expensive Goods instead. This leads to Demand Curve Shifting to the Left -Luxury Goods are those that are Not Essential and are Associated with those with Higher Wealth and Income, due to Status and Flex. More Equality in Income therefore may seen Demand Curve for Luxury Goods shift to the Left.
0 / 5 Â (0 ratings)
1 answer(s) in total