Mr. Burns buys only lobster and chicken. Lobsteris a normal good, while chicken is an inferior good.When the price of lobster rises, Mr. Burns buysa. less of both goods.b. more lobster and less chicken.c. less lobster and more chicken.d. less lobster, but the impact on chicken isambiguous.

Mr. Burns buys only lobster and chicken. Lobsteris a normal good, while chicken is an inferior good.When the price of lobster rises, Mr. Burns buysa. less of both goods.b. more lobster and less chicken.c. less lobster and more chicken.d. less lobster, but the impact on chicken isambiguous.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 4CQQ

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

Mr. Burns buys only lobster and chicken. Lobster
is a normal good, while chicken is an inferior good.
When the price of lobster rises, Mr. Burns buys
a. less of both goods.
b. more lobster and less chicken.
c. less lobster and more chicken.
d. less lobster, but the impact on chicken is
ambiguous.

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