There are two types of good- normal good and inferior good that will be discussed. A normal good is affected by income positively. That means as income increased quantity decreases. Note that when it says income, income goes up, it means the real income or the purchasing power of the consumer. An inferior good, however, a good that may in the consumer eyes be the sign of cheapness, inferior quality, consumers will buy less of …
showed first 75 words of 326 total

showed last 75 words of 326 total
…less, now that price of a product decrease, consumers can now buy more of it and subsequently will demand less of the substitute. Rationality also plays a major role here, consumers will choose the product with less price. For inferior product as price decreases quantity decreases. Anyway substitute product are products that to the consumer are the same and thus will regularly replace one with the other. Essay - comment on the structure and comment