Solution
A goffen product is a good for which demand increase
as a price increase, and falls demand when prices decrease.
Because it is the human mentality that is higher product is better. Higher price definitely demand is decrease for wheat A product. Demand decrease price decrease and quality decrease.
B is a substitute because the decrease in the price of wheat decrease will decrease the demand for its substitute.
An inverse relationship is represented downward sloping line from left to right.
What will be the income effect for the people from group A?
Inferior goods are goods for which demand declines as customer real income rise.
So falls demand when the price decrease or income increases so he does not take any good. Who has not beneficial for consumers very carry for health.
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1 Comments
Sir that's not copy past solution
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