Asked by Natalia Smart on Jun 10, 2024
Verified
Assuming that beer is a normal good,what will happen to the demand for beer near college towns if student income increased?
A) Demand will fall because students love these beers
B) Demand will fall
C) Demand will rise
D) Supply would rise
Normal Good
A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being equal.
Student Income
The amount of money earned or received by students from employment, grants, stipends, or other sources while pursuing their studies.
Demand RISE
An increase in the quantity of a product or service that consumers are willing and able to purchase at a given price.
- Discern the distinction between ordinary and inferior goods, considering how fluctuating income levels impact demand for them.
Verified Answer
-B
-Suzilawati binti Uyob (UC)Jun 11, 2024
Final Answer :
C
Explanation :
If student income increases, they will have more money to spend on goods, including beer. As beer is a normal good, the demand for it will rise in college towns. Therefore, the correct answer is C. Choices A and B are incorrect assumptions, while choice D is irrelevant to the question asked.
Learning Objectives
- Discern the distinction between ordinary and inferior goods, considering how fluctuating income levels impact demand for them.