Would demand schedule still be valid for an inferior good

Reference no: EM13900608

The following table shows a demand schedule for a normal good.

Price	Quantity demanded
$23	70
21	90
19	110
17	130

a. Do you think that the increase in quantity demanded (say, from 90 to 110 in the table) when price decreases (from $21 to $19) is due to a rise in consumers' income? Explain clearly (and briefly) why or why not.

b. Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good?

c. Lastly, assume you do not know whether the good is normal or inferior. Devise an experiment that would allow you to determine which one it was. Explain.

Reference no: EM13900608

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