Unformatted text preview: it's snowing, fewer people will crave a cold soda, and the price they are willing to pay for a cold soda is lower, although they may be willing to pay a little extra money for a hot coffee. Normal, Inferior, and Giffen Goods Are all goods the same? Is more always better? Up to this point, we have been assuming that when we have more money, or feel like we have more money, we will tend to buy more goods. It makes sense: the more money we have, the more we buy. If we have less money, or if the price goes up, however, we tend to buy less. Because this is usually the case, we call such goods normal goods. If you buy more of a good when you have more money, that good is a normal good. If the price of a normal good increases, you buy less....
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- Fall '08
- Microeconomics, Giffen Goods, eat fewer hamburgers