Author Question: An indication that the economy is in recession, e.g., a rise in the number of used clothing stores ... (Read 93 times)

craiczarry · **on:** Jul 1, 2018

An indication that the economy is in recession, e.g., a rise in the number of used clothing stores for babies, suggests that
a. used clothes for babies are a necessity
b. used clothes for babies are an inferior good
c. used clothes for babies are a normal good
d. new clothes for babies are a luxury
e. used clothes for babies have price-elastic demand

Question 2

An inferior good is
a. any good of low quality
b. one that consumers buy less of as the price rises
c. one that consumers buy less of as their income rises
d. one that has few substitutes
e. any good made with inexpensive labor