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Aziza Ladraa
on Oct 27, 2024

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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.
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CK
Charbel KabalanNov 02, 2024
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