Question: Regular bread, like white or wheat, is a normal good. As a person' income increases the demand will increase but not as much as the
Regular bread, like white or wheat, is a normal good. As a person' income increases the demand will increase but not as much as the individuals income increased. The income elasticity for the regular bread demand will be positive but less than 1. Regular bread is generally a necessity but is only a very small part of a consumer's budget. However, a lower quality or store brand bread is an inferior good so as a person's income increases the lower quality bread demand will decrease. So the income elasticity demand for the inferior bread would be negative. So, regular bread is a normal good with a positive but the lower quality inferior bread would be a negative
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