Suppose that the market demand curve for sunflowers is a function of the price of sunflowers, the price of roses, and income. If the partial derivative of quantity demanded of sunflowers with respect to income is negative:

Question

Quizplus · Accepted Answer

A negative partial derivative of quantity demanded with respect to income indicates that as income increases, the quantity demanded of sunflowers decreases. This is a characteristic of inferior goods, not normal goods. Therefore, sunflowers are inferior goods. The information given does not provide any indication about the nature of roses (whether they are normal or inferior goods).

Suppose That the Market Demand Curve for Sunflowers Is a Function