Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 21 - Part VII - The Theory of Consumer Choice - Quick Check Multiple Choice - Page 458: 4

Answer

C) less milk and more cereal

Work Step by Step

An inferior good is something that a customer buys less of a good when their income rises (this customer would buy more of the item when the price of said item goes up). A normal good is something that the consumer wants more of a good when their income rises (this customer would buy less of the item when the price of said good goes up). In other words, as prices go up, you want to buy more inferior goods, but less normal goods.
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