If you wish to open a store and you do not like risk,it would be wise to sell:
A) only normal goods.
B) a mix of normal and inferior goods.
C) all inferior goods.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

Selling a mix of normal and inferior goods can help mitigate risk because consumer demand for these types of goods tends to move in opposite directions depending on the economic environment. During economic downturns, demand for inferior goods (cheaper alternatives) tends to increase, while demand for normal goods (more expensive and higher-quality items) tends to decrease, and vice versa during economic upturns. This mix can provide a more stable revenue stream.

If You Wish to Open a Store and You Do