What's The Deal Dirk?
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Is it possible to have a good that is both normal and inferior? One example I can think of is the Toyota Corolla. I imagine demand would increase directly with income for a a while. At a high enough income, status would kick in, and people would cease to buy the Corolla, meaning demand would seem to decrease as income increases.
This question asked by Geoff B. from Mount Royal University
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That is correct. Someone with a low income might aspire to buy a Corolla (normal good) but beyond some income level they view the Corolla as an inferior good because the want a Camry or Lexus instead.. That fact that you understand that a single good can be inferior or normal depending on the income level is excellent.
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