Fred, a poor college student, states: "I eat tuna sandwiches five times a week. When I graduate and get a real job, I will never purchase tuna again." Is Fred planning on breaking the law of demand?
For normal goods, we expect consumers to increase their expenditures as their incomes rise. Fred views tuna as an inferior good. He buys tuna because his income is low; as his income rises, he plans on purchasing less.
Economics
You might also like to view...
Decisions by ________ about their holdings of currency and by ________ about their holdings of excess reserves affect the money supply
A) borrowers; depositors B) banks; depositors C) depositors; borrowers D) depositors; banks
Economics
The demand curve shows the relationship between:
A. money income and quantity demanded. B. price and production costs. C. price and quantity demanded. D. consumer tastes and quantity demanded.
Economics