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How Does a Firm Know Whether It Has the Correct

question 88

Essay

How does a firm know whether it has the correct number of suppliers?


Definitions:

Inferior

A type of good for which demand decreases as the income of consumers increases.

Normal Good

A good whose demand increases as the income of consumers increases, and vice versa.

Normal Good

A type of good for which demand increases as the income of consumers increase, demonstrating a positive correlation between income and demand.

Inferior Good

A type of product whose demand decreases when the income of consumers increases, inverse to normal goods.

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