Exam 4: The Market Forces of Supply and Demand

In a free market, the price at which a product is sold is determined by:

Consider the following events and explain whether you think the good is normal or inferior. a. economic growth in China leads to higher incomes and increased imports of alligator shoes b. John graduates from university, gets a job as an analyst and stops buying two-minute noodles c. a married couple buys less wine after the wife leaves the workforce to raise a family