Asked by eliza mooradian on May 14, 2024
Verified
Using our model of consumer choice, is it possible for a consumer to buy less of a particular good when his income rises? Briefly explain.
Consumer Choice
The decision-making process by which individuals select from available alternatives to maximize their satisfaction.
Income Rises
An increase in the amount of money earned from work, investments, or other sources over a period of time.
Particular Good
A specific item or product that is distinguished by its unique characteristics and attributes, offering distinct benefits to the consumer.
- Recognize the possibility of abnormal consumer responses to income and price changes, including Giffen goods and inferior goods.
Verified Answer
AR
aneesa rahimMay 19, 2024
Final Answer :
Yes, an increase in income will lead a consumer to buy less of a good when it is an inferior good.
Learning Objectives
- Recognize the possibility of abnormal consumer responses to income and price changes, including Giffen goods and inferior goods.