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Normal Goods And Inferior Goods...

Normal Goods And Inferior Goods

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What is the impact of the following statements on the demand curve for good X ? Give reasons. (a) Consumer's income rises and good X is a normal good. (b)Consumer's income falls and good X is an inferior good. (c ) Price of complementary good Y rises.

Explain with the help of an example the basis of classifying goods into final goods and intermediate goods.

Explain the effect of the following on demand for a good: (i) Fall in Income for Normal Goods. (ii) Fall in Income for Inferior Goods.