Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer,

Question

Quizplus · Accepted Answer

The law of demand states that as income increases, the demand for inferior goods decreases and the demand for normal goods increases. In this scenario, Homer's income has increased and his demand for tuna (which he originally purchased more of) has decreased while his demand for chicken has increased. Therefore, tuna is an inferior good and chicken is a normal good.

Homer Changes Jobs and His New Job Pays Him a Higher