The Difference Between Normal and Inferior Goods Is That

question 111

Multiple Choice

The difference between normal and inferior goods is that

• A) an increase in price will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward.
• B) if the price of a normal good increases, individuals who buy it are poorer; for inferior goods, the opposite is true.
• C) an inferior good is something that will not be demanded until quantities of the normal good have been exhausted.
• D) an increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward.

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Definitions:

Test Statistic

A measurement derived from sampled data in a hypothesis test, employed to decide if the null hypothesis should be dismissed.

P-Value

The probability of observing a test statistic as extreme as, or more than, what was actually observed, assuming that the null hypothesis is true.

Null Hypothesis

A hypothesis that proposes no statistical significance between the two studied groups, assuming that any observed difference is due to sampling or experimental error.

Alternative Hypotheses

A statement that suggests a potential outcome or association that contradicts the null hypothesis in statistical testing.