10-) Can you give you an example of inferior good? What goods do you buy less wh

Question

10-) Can you give you an example of inferior good? What goods do you buy less when you make more income? 11-) What are the differences between a quantity demanded and demand in general? 12-) Do you think a supply/demand model is too simple to explain the real word? Briefly express your own ideas. 13-) What is the relationship between technology and supply in general? Briefly explain. 14-) We know tastes and preferences play an important role in "demand: Can you think of any possible future "popular product"? (Free Response Question) 15-) In what markets, expectations are very important? Can you think of an example? (Free Response Question)

Explanation / Answer

Question 10

Inferior good refers to the good whose demand increases as the income of the consumer decreases and whose demand decreases as the income of the consumer increases.

The low-quality goods are generally regarded inferior goods.

Example of inferior good - Margarine

With respect to income, goods can be classified into two - normal goods and the inferior goods.

Normal goods are those goods whose demand increases as the income of the consumer increases and whose demand decreases as the income of the consumer decreases.

Inferior good refers to the good whose demand increases as the income of the consumer decreases and whose demand decreases as the income of the consumer increases.

As the above discussion indicates, it is the inferior goods that we will buy less when we make more income.

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