Economics Worksheet: Goods and Demand

A normal good is one for which demand decreases as consumer income increases.

• True

• False

Peanut butter and jelly are an example of substitute goods.

• True

• False

If the price of coffee increases, the demand for sugar, a complementary good, is likely to decrease.

• True

• False

Which of the following is the best example of an inferior good?

• A new smartphone

• A luxury car

• Generic brand cereal

• Organic vegetables

Which of the following pairs of goods are most likely to be substitutes?

• Coffee and coffee filters

• Gasoline and tires

• Butter and margarine

• Computer and software

Which type of good has a demand that moves in the same direction as consumer income?

• Inferior good

• Complementary good

• Substitute good

• Normal good

If the price of movie tickets goes down, what is the likely effect on the demand for popcorn at the movie theater?

• Decrease

• Increase

• No change

• Cannot be determined

Which of the following is NOT a characteristic of a normal good?

• Demand increases with income.

• Demand decreases with income.

• It is often a necessity or a desired product.

• Examples include new clothes and restaurant meals.

Consider the relationship between gasoline and cars. These are best described as:

• Substitute goods

• Complementary goods

• Inferior goods

• Normal goods

When a consumer's income decreases, their demand for a particular good increases. This good is most likely a(n):

• Normal good

• Substitute good

• Complementary good

• Inferior good