If cheese in a can is an inferior good, what happens to its market when consumer income increases?

Alright, if cheese in a can is an inferior good, what happens to its market when consumer income increases? Alright, so now we're talking about increases in income and inferior goods. Alright, so let's think about that. People buy inferior goods when they have less money right? So now people are gonna have more money. So you're gonna imagine they're gonna buy more normal goods. They're gonna buy less inferior goods right? So the logic here is that income is increasing. Therefore, demand for inferior goods is going to decrease, right? They are inversely proportional there. So you could think of it right, the income increasing is a bad thing for the cheese in a can market. Since it's an inferior good, people are gonna buy less of it because they have more money, they're gonna buy more normal goods. So this is going to be a shift to the left because it's a bad thing for the product. We're gonna shift to the left. Let's see what that looks like on a graph. I'll do it right here. So we've got our axes and price and quantity, and let's say our demand started something like this demand 1. Well our demand shifted to the left so we're gonna be somewhere around here now. That's gonna be d2 right there. We've shifted to the left. Right and that is because we're in a market for an inferior product and income has increased. Cool, alright let's move on.

If cheese in a can is an inferior good, what happens to its marke...

1. Introduction to Macroeconomics1h 57m

2. Introductory Economic Models59m

3. Supply and Demand3h 43m

4. Elasticity2h 26m

5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 40m

6. Introduction to Taxes1h 25m

7. Externalities1h 3m

8. The Types of Goods1h 13m

9. International Trade1h 16m

10. Introducing Economic Concepts49m

11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)1h 37m

12. Unemployment and Inflation1h 22m

13. Productivity and Economic Growth1h 17m

14. The Financial System1h 37m

15. Income and Consumption52m

16. Deriving the Aggregate Expenditures Model1h 22m

17. Aggregate Demand and Aggregate Supply Analysis1h 18m

18. The Monetary System1h 1m

19. Monetary Policy1h 32m

20. Fiscal Policy1h 0m

21. Revisiting Inflation, Unemployment, and Policy46m

22. Balance of Payments30m

23. Exchange Rates1h 16m

24. Macroeconomic Schools of Thought40m

25. Dynamic AD/AS Model35m

26. Special Topics11m

If cheese in a can is an inferior good, what happens to its market when consumer income increases?

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