Asked by
Aziza Ladraa
on Oct 27, 2024Verified
Assume that,as the price of cauliflower falls,the income effect causes consumers to buy fewer heads of cauliflower.We can conclude that cauliflower is:
A) an inferior good.
B) nasty tasting.
C) a normal good.
D) expensive.
Income Effect
The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.
Inferior Good
A type of good for which demand decreases as the income of the consumer increases, typically because consumers can afford better alternatives.
- Learn to differentiate between normal goods and inferior goods, appreciating the unique behaviors of their demand curves.
Verified Answer
CK
Learning Objectives
- Learn to differentiate between normal goods and inferior goods, appreciating the unique behaviors of their demand curves.