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Unformatted text preview: demand curve. An increase in demand will cause the curve to shift to the right, this is a change that increases the quantity demanded at every price. A decrease in demand will cause the curve to shift to the left, this is a change that decreases the quantity demanded at every price. Normal Good: consumption increases when income increases o for example, clothes. When income increases, one would expect to shop for more clothes, and therefore demand for clothing would increase. Inferior Good : consumption decreases when income increases o For example, ramen noodles. When income increases, one would expect to have to rely on the low price of ramen noodles and buy a wider range of foods, therefore demand for ramen noodles would decrease....
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This note was uploaded on 10/05/2011 for the course ECON 2023 taught by Professor Unknown during the Spring '05 term at Arkansas.
- Spring '05