Introduction to Economics 1 Deneme Sınavı Sorusu #712996

8. Suppose that the income of a person who wants to buy a car has increased. If this person prefers to buy a higher priced car instead of the car which he/she decided to buy before the increase in his/her income, what good is the car previously decided to buy called?


Inferior

Normal

Complementary

Of choice

Ordinary


Yanıt Açıklaması:

A product is said to be inferior if the demand for that product goes down when the income of the consumers increases.  Consumers prefer to buy higher priced substitutes in place of the inferior goods when their income rises. Examples of inferior goods may be ordinary (white) bread, cheap cheese (“lor”) or fake brand (imitation) jeans. If income increases, the demand curve for the inferior good will shift down to the left. When income reaches a certain level, the consumer buys only the higher quality goods and the demand for the inferior good will become zero. Inferior goods are the goods for which the demand falls when the income goes up. As it is understood the correct answer is “A”. Normal goods are the goods for which the demand increases when income is higher and decreases when income is lower. Two goods are said to be complements if they are generally or necessarily consumed together, such as tea and sugar cubes or printers and ink cartridges. Of choice means preferred. Ordinary means normal or average, and not unusual or special.

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