Question 1
Inferior goods are best defined as
◦ goods whose supply falls as people's income rises.
◦ goods that have higher-quality alternatives.
◦ goods whose demand falls as people's income rises.
◦ goods that only those who are relatively poor purchase.
Question 2
Which of the following would NOT cause a shift in the demand curve for CDs?
◦ A change in wealth
◦ A change in the price of CDs
◦ A change in the price of DVDs
◦ A change in income