Asked by Yanna Listana on Jul 11, 2024
Verified
Melissa's optimal consumption is indicated in the diagram below for three different income levels. For Melissa are park visits a normal or inferior good? Explain your answer. 
Normal Good
A type of good for which demand increases when income increases and falls when income decreases, assuming all other factors remain constant.
Park Visits
The act of visiting a park for recreational, leisure, or sports activities, reflecting an individual's preference or demand for outdoor spaces.
- Acquire knowledge on the characteristics and concept of normal and inferior goods.
- Understand the relationship between income levels and consumer preferences.
Verified Answer
AE
Aubrey EvansJul 16, 2024
Final Answer :
Melissa's demand behavior exhibited above suggests that as her income rises, she demands fewer park visits. Since the income effect is negative, park visits are an inferior good for Melissa.
Learning Objectives
- Acquire knowledge on the characteristics and concept of normal and inferior goods.
- Understand the relationship between income levels and consumer preferences.