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Unformatted text preview: If you increase the price an elastic good such as Snickers, Butterfinger will have a higher demand. If you increase the price of milk, the quantity demanded for candy bar will decrease. Dad or mom will not be able to pay for the candy bars they are substitutes for each other. Inferior good: o A good that decreases in demand when the consumer income rises. o Irish potato famine: people actually purchased more potatoes because their purchasing power decreased. o Example: spam, hamburger meat, pizza. Normal good: o We tend to buy more of when our income increases. o The term does not refer to the quality of goods....
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- Fall '07