Question

The demand for

goods increases with a decrease in income, whereas
are goods that cannot be bought or sold.

Answer 1

Inferior goods are those whose demand increases as income decreases, such as generic brand groceries. Public goods are items or services that cannot be bought or sold, typically provided by the government like street lighting and national defense.

Step-by-step explanation:

The goods whose demand increases with a decrease in income are known as inferior goods. These are the types of goods that people tend to consume more of when their income is lower because they cannot afford more expensive alternatives. An example of this might be opting for generic brand groceries rather than name-brand items. As income decreases, people are more likely to purchase these lower-cost items, increasing their demand.

On the other hand, goods that cannot be bought or sold are often referred to as public goods or non-excludable goods. These are items or services that are typically offered to all members of a society, often by the government, and include things like public parks, street lighting, and national defense.

Answer 2

A normal good is a good that experiences an increase in its demand due to a rise in consumers' income. Normal goods include food ...