When consumers get more money, what do they tend to substitute normal goods for?

Question

Guest

Business

19 April, 08:10

When consumers get more money, what do they tend to substitute normal goods for?

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Answers (2)

Know the Answer?

Julio Boyle · Answer 1

inferior goods

Ella Duke · Answer 2

Inferior goods

Explanation:

When income increases customers tent to substitute normal goods for inferior goods, overall, inferior goods are the goods which customers demand after an increase in the income or whenever they get more money. For example, a person who drinks a regular cup of coffee (Normal good) might want a bigger cup of coffee (Inferior good) after an increase in income.