The Difference Between Normal and Inferior Goods Is That

question 101

Multiple Choice

The difference between normal and inferior goods is that

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

Cash Deal

A transaction where payment is made in full using cash or cash equivalents rather than financing or trading.

Incremental Value

The additional or extra value generated by undertaking a certain action or investment, compared to not doing so.

Merged Firm

A company that results from the combination or amalgamation of two or more companies, integrating their operations, resources, and strategies.