Complete the sentences regarding demand. The demand for inferior goods increases with a decrease in income, whereas public are goods that cannot be bought or sold.
The demand for INFERIOR goods increases with a decrease in income, whereas PUBLIC goods are goods that cannot be bought or sold.
Public goods are those goods that belong to everybody like environmental goods, defense, law enforcement etc.
Inferior goods demand decreases with an increase in income. Like canned vegetables demand decreases when income increases and people move towards organic vegetables. When income decreases, canned vegetables demand increases.
