Information AboutNormal Good |
| CATEGORIES ABOUT NORMAL GOOD | |
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Depending on the Indifference Curve s, the amount of a good bought can either increase, decrease, or stay the same when income increases. In the diagram below, good Y is a normal good since the amount purchased increases from Y1 to Y2 as the Budget Constraint shifts from BC1 to the higher income BC2. Good X is an Inferior Good since the amount bought decreases from X1 to X2 as income increases. SEE ALSO |
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