contestada

If Cassandra bought 16 cotton blouses last year when her income was $40,000 and she buys 14 cotton blouses this year when her income is $35,000, then for Cassandra cotton blouses are:

a) an inferior good
b) a normal good
c) a substitute good
d) a complementary good
e) there is not enough information to answer this question

Respuesta :

Answer: Normal good

Explanation:

A normal good is a good that has a positive correlation between its income and demand. This means that for a normal good, an increase in income will lead to an increase in the demand for the good while a reduction in income will also lead to a reduction in the demand for the good.

Cassandra bought 16 clothes when her income was $40000 but when her income reduced to $35000, she bought less of the good. That means that the cotton blouses bought by Cassandra are normal good.

Otras preguntas