Study guides, Class notes & Summaries

Question 1 People eat at restaurants less often when their incomes fall because of a recession. Eating at restaurants must be a substitute for other goods. a complement to other goods. an inelastic good. an inferior good. a normal good. Question 2 In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior? The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen. The store is trying t...