Economist george stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.”

Question

29-03-2017
Business

contestada

Economist george stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.”

Respuesta :

Otras preguntas

C = (F - 32) * 5/9, the letter "F" is known as which of the following?

What does the oldest sheep think about how Wilbur actsin the morning?O 1. Wilbur is acting proud.O 2. Wilbur is acting selfish.03. Wilbur is acting foolish.04.

4 yd 2 ft = _____ ft. Explain how you knew how to solve the problem.

6. In the continental US rainwater that falls west of the Great Continental Divide will eventually end up flowing to which ocean?

Where does this statement belong the main message is that keeping secrets can hurt those around us

Given f(x) = 2x2 − 3 and g(x) = x + 8, identify g(f(4)). Show your work.

how did the freedman's bureau help many African Americans families?

Describe the economic challenges facing developing nations.

Express the area of the entire rectangle.Your answer should be a polynomial in standard form.

Which of the following reads: west, east, north, south? O A. oeste, norte, sur, norte B. este, oeste, sur, norte C. este, sur, norte, este D. oeste, este, norte

ACCESS MORE EDU ACCESS

metchelle metchelle · Answer 1 · 2017-04-12T09:52:54+02:00

George Stigler is a known American economist and according to his theory the Consumer theory, he quoted that “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This means that when consumers do not purchase a certain product even if their incomes increases, that is considered normal, but when the product increases in value, we can expect that these consumers will buy less of the product.

avantikar avantikar · Answer 2 · 2020-01-02T12:30:18+01:00

Economist George Stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This is an example of normal goods and inferior goods.

Further Explanation:

Normal goods:

Normal goods refer to the types of goods, the demand for the good is increased when the income rises. When the income is increased, the demand for good rises. Now the individual buys more quantity of goods. When the income is decreased, the demand for a product fall.

Inferior goods:

Inferior goods are those type of goods, the demand for the good is decreased, when the income rises. When the income is increased, the demand for a good fall. Now the individual buys less quantity of goods. When the income is decreased, the demand for a good rise.

The consumer does not purchase less when the income rise because the purchasing power of the consumer is increased. The consumer buys less of the product, the price of the product rises.

According to the law of demand, the demand for the product is increased when the price falls and the demand for the product is decreased when the price low.

Learn more:

1. Learn more about an increase in price

https://brainly.com/question/3352455

2. Learn more about goods production

https://brainly.com/question/9356259

3. Learn more about GDP and taxes

https://brainly.com/question/4306898

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Types of good

Keywords:

Economist, George Stigler, consumer theory, commodity, product, goods, normal goods, inferior goods, the law of demand, purchasing power.