Asked by Gurlivleen Singh on Apr 24, 2024

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The demand curve is inelastic for inferior goods and elastic for normal goods.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases, and vice versa, holding all other factors constant.

  • Distinguish between different types of goods (normal, inferior) based on income and price elasticity.
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Caroline CapaprisMay 02, 2024
Final Answer :
False
Explanation :
The elasticity of the demand curve for a good (whether it is inferior or normal) depends on factors such as the availability of substitutes, the proportion of income spent on the good, and the time period considered, rather than the good's classification as inferior or normal.