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2 cards from this section. Quick, good the night before a test.
What happens to the demand for normal goods when income increases?
Think about what happens to your choices when you have more money.
Define inferior goods.
Consider which cheap alternatives people abandon when they have more money.
What happens to the demand curve for normal goods as consumer income rises?
Consider how you would spend more money on your favorite products.
True or False: An increase in the price of a substitute decreases its demand.
Think about how you might react if your favorite snack’s price goes up.
Suppose a consumer's income rises significantly. Evaluate the potential shifts in demand for both luxury and inferior goods.
Consider how people react to increased wealth when choosing items.
Analyze the impact of a trending health report linking fries to health risks. Predict how this will affect the demand curve for fries.
Think of similar past occurrences in food trends.
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