1. Good's own price:
2. Price of related goods: The principal related goods are complements and substitutes.
3. Personal Disposable Income:
4. Tastes or preferences: The greater the desire to own a good the more likely you are to buy the good.
5. Consumer expectations about future prices and income:If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now.
they can be a normal good ou inferior good its depend where has more demand.
Normal good
Yes, a normal good is a good that's demand increases as your income increases, an inferior good is a good that's demand decreases when income increases. An example of a normal good, is easy to find, most goods are normal, meaning you want more of them when you have more money. An inferior good is something like fast food, as you earn more income, you will usually demand less of it.
If income elasticity is positive, then it is a normal good. Otherwise, it is an inferior good.
if price of input for any product good is influence by
they can be a normal good ou inferior good its depend where has more demand.
Normal good
Yes, a normal good is a good that's demand increases as your income increases, an inferior good is a good that's demand decreases when income increases. An example of a normal good, is easy to find, most goods are normal, meaning you want more of them when you have more money. An inferior good is something like fast food, as you earn more income, you will usually demand less of it.
1. Good's own price:2. Price of related goods: The principal related goods are complements and substitutes.3. Personal Disposable Income:4. Tastes or preferences: The greater the desire to own a good the more likely you are to buy the good.5. Consumer expectations about future prices and income:If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now.
normal food
If income elasticity is positive, then it is a normal good. Otherwise, it is an inferior good.
if price of input for any product good is influence by
yes it is a normal good . because price rises, demand also rises subject to condition that income rises
normal food
because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.
An increase in income tends to shift the demand curve for a good or service:For a normal good, the curve will shift to the right, indicating an increase in the demand at the same price.For an inferior good, the curve will tend to shift to the left, indicating a decrease in demand at the same price.
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.