Answer to Question #277085 in Macroeconomics for Hashir sheikh

Question

popeyes income declines and, as a result he buy more spinach. in spinach an inferior or a normal good? what happens to propeye's demand curve for spinach?

Answer 1

Popeye buys more spinach when his income declines. As such, spinach is an inferior good for him. His demand curve for spinach shifts out to the right as a result of the decrease in his income.