Show What You Know: Supply & Demand

This computer best describes ...

• Normal Good

• Inferior Good

• Neither of these options

Answer explanation

Normal goods are those items we regularly can afford

inferior goods are those items that are the same as a normal but might be a different or generic brand.

A prepaid cell phone plan describes a ___________ good on in comparison to a plan from Verizon.

• Inferior

• Normal

• Fungible

• Substitute

Answer explanation

Inferior goods in one whose demand drops when your income rises.

Substitutes refers to a product or service that consumers see essentially the same and is used in place of another.

Which of the following is NOT a pair of substitute goods?

• Bread & butter

• Rolls & Bagels

• Butter & Margarine

• Books and e-books

Answer explanation

Substitute goods are essentially the same or similar to another product.

Which of the following is NOT fungible?

• 
• 
• 
• 

Answer explanation

Fungible goods are items that are interchangeable because they are identical to each other for practical purposes.

In your own words, define the law of supply