Question

There are a number of goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good that experienced this transition is a CRT television, also known as a tube television. In the 1980s, more income for a household usually resulted in more CRT TVs being purchased. Today, more CRT TVs are purchased by households that have experienced a reduction in income. Why does this happen?

Answer 1

B) A CRT TV has become an inferior good because people buy more of this type of TV when they have lower incomes. BUT THE REASON THEY BECAME AN INFERIOR GOOD IS BECAUSE THEY ARE OBSOLETE.

Step-by-step explanation:

CRT TVs are like cameras that used photographic film, they are completely obsolete. They are currently sold only on some Asian and African countries as very cheap TVs. Before everyone I knew had a CRT TV, because it was the only TV available and they were very expensive. Now people buy smart TVs and they keep getting bigger every time. There are no smart CRT TVs, so they are obsolete and then they turned into an inferior good.