The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name Y. Good Y is an inferior good. a. How will the demand for good X change if consumer incomes decrease? b. How will the demand for good Y change if consumer incomes increase? c. How will the demand for good X change if the price of good Y increases? d. Is good Y a lower-quality product than good X? Explain.

/in /by

The X-Corporation produces a good (called X) that is a normal good.
Its competitor, Y-Corp., makes a substitute good that it markets under
the name Y. Good Y is an inferior good.

a. How will the demand for good X change if consumer incomes
decrease?

b. How will the demand for good Y change if consumer incomes
increase?

c. How will the demand for good X change if the price of good Y
increases?

d. Is good Y a lower-quality product than good X? Explain.

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