Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Questions for Review - Page 86: 4

Answer

Spinach is an inferior good. Popeye's demand curve for Spinach would shift to the right.

Work Step by Step

Since Popeye's income has declined, hence his purchasing power has decreased. As a result, he should demand lesser normal good. Since would not want to spend more amount to maintain the level of his consumption of normal goods, he would shift his preference toward inferior goods like spinach that he can buy with lesser money. Now, since the demand for the spinach has increased, hence, the demand curve would shift to the right.
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