Soru
As Miles's income decreases, his demand for vacations decreases. What type of good are vacations for William? For William, vacations are __ A. an inferior good B. a normal good C. a substitute D. a complement
Çözüm
4.5
(293 Oylar)
Ahmet
Usta · 5 yıl öğretmeni
Uzman doğrulaması
Cevap
A
Daha Fazla
## Step 1The problem is about the concept of "inferior goods" in economics. Inferior goods are those goods for which demand decreases when income increases, and vice versa. This is the opposite of normal goods, for which demand increases as income increases.## Step 2In the problem, it is stated that as Miles's income decreases, his demand for vacations also decreases. This is a characteristic of an inferior good.## Step 3Therefore, for William, vacations are an inferior good.