Income and Demand ECO220
Demand by households is often affected by fluctuation in the economy and income. Think of the relationship between income and demand and discuss the following questions based on the readings and other sources you found: What are “normal” goods? Define and give an example in our current economy. What are “inferior” goods? Define and give an example in our current economy. Do you think luxury goods have more elastic or inelastic demand? Explain. Please use different examples than your classmates. Let’s make it an interesting discussion!
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