A demand schedule for a normal good is as follows: Price               Quantity demanded Rs.230                            70 210                                90 190                              110 170                              130 i) Do you think that the increase in quantity demanded (say, from 90 to 110 in the table) when price decreases (from Rs.210 toRs.190) is due to a rise in consumers’ income? Explain clearly (and briefly) why or why not. ii) Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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A demand schedule for a normal good is as follows:

Price               Quantity demanded

Rs.230                            70

210                                90

190                              110

170                              130

i) Do you think that the increase in quantity demanded (say, from 90 to 110 in the table) when price decreases (from Rs.210 toRs.190) is due to a rise in consumers’ income? Explain clearly (and briefly) why or why not.

ii) Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good?

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