Question

As Sandi's income rises, her demand for popcorn rises. As Mark's income falls, his demand for prepaid telephone cards rises. What kinds of goods are popcorn and telephone cards for Sandi and Mark?

Answer 1

Popcorn is a normal good for Sandi as her demand increases with rising income, while prepaid telephone cards are an inferior good for Mark, as his demand increases with decreasing income.

Step-by-step explanation:

For Sandi, popcorn is a normal good because her demand for popcorn increases as her income rises. In economics, normal goods are those for which demand goes up when income increases. Conversely, Mark's behavior indicates that prepaid telephone cards are an inferior good for him, as his demand for them rises when his income falls. Inferior goods are those which see increased demand when income decreases, often because they are seen as a more affordable alternative to more expensive options.