Answered: 1. What is a normal good? Give a real…

1. What is a normal good? Give a real world example of a good where normality is not likely to be a reasonable assumption. Explain why the example you have chosen is not likely to be a normal good.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 6RQ: Would you expect total utility to rise or fall with additional consumption of a good? Why?

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

1. What is a normal good? Give a real world example of a good where
normality is not likely to be a reasonable assumption. Explain why the
example you have chosen is not likely to be a normal good.

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