Asked by George Maillard Jr. on May 20, 2024
Verified
An inferior good is less durable than a normal good.
Inferior Good
A type of good for which demand decreases as the consumer's income increases, contrasting with normal goods.
Less Durable
Describes goods or products that have a shorter usable lifespan before they degrade, wear out, or become obsolete.
- Identify the distinctions among normal goods, inferior goods, and luxury goods in relation to income elasticity.
Verified Answer
NG
Neily GwenneMay 20, 2024
Final Answer :
False
Explanation :
The durability of a product is not related to whether it is an inferior or normal good. Inferior goods are those that people tend to buy less of when their income increases, while normal goods are those that people tend to buy more of when their income increases.
Learning Objectives
- Identify the distinctions among normal goods, inferior goods, and luxury goods in relation to income elasticity.