As the economy recovers from a recession, we should expect that demand for:

Question

Quizplus · Accepted Answer

During a recession, consumers may switch to purchasing inferior goods, which are cheaper substitutes for a normal good. As the economy recovers, consumers will have more disposable income and will be more willing to pay for higher quality goods, leading to a decrease in demand for inferior goods and an increase in demand for normal goods. Therefore, choice A is the best option.

As the Economy Recovers from a Recession, We Should Expect