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Gold prices rise by an incredible amount during a recession, a recent example is in the 2008 economic crisis, where gold price skyrocketed in a few short years. Why? well, during a recession like the recent one, people tend to not trust currencies and look for physical goods which can be stored without fear of falling in value (gold has been a precious metal for thousands of years). During 08 many countries borrowed money and as a result it created the possibility of monetary inflation ontop of the current level of inflation in order to repay the debts, as a result many people turned to gold and other precious metals for safety. Furthermore, during a recession people tend to not trust banks with money, so having a physical item you can trade for is of much more value.
Proof: goldprice DOT org/
With reference to the law of demand, an increase in prices mean an increase in the quantity demanded
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∙ 9y ago
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When people buy less of a good as their income increases the good is considered what?
inferior
Are chips and salsa an inferior or normal good?
they can be a normal good ou inferior good its depend where has more demand.
Is coffee an inferior good?
no
How do you show that in a two good world neither good is inferior?
If the income elasticity of demand is negative for both goods, then they are both not inferior goods.
What are the different types of goods?
Luxury Good, Normal Good, and Inferior Good.
When people buy less of a good as their income increases the good is considered what?
inferior
Are chips and salsa an inferior or normal good?
they can be a normal good ou inferior good its depend where has more demand.
Is coffee an inferior good?
no
How do you show that in a two good world neither good is inferior?
If the income elasticity of demand is negative for both goods, then they are both not inferior goods.
Can you put inferior in a sentence?
In my opinion the PlayStation 3 is a far inferior system to the Xbox.Don't feel inferior, you played just as good as him, and you were really unlucky not to win.That hot dog is of inferior quality.
Another way of saying not as good as?
inferior to
What's an inferior good?
poor quality
What are the different types of goods?
Luxury Good, Normal Good, and Inferior Good.
Is alcohol an inferior good?
Because alcohol consumption goes up when an economy goes down, alcohol is indeed an inferior good from an economics standpoint.
When people buy more of a certain good this good is considered what?
The answer is inferior
Type of good whose demand falls when income increases?
inferior good
Is there a difference between a normal good and inferior good?
Yes, a normal good is a good that's demand increases as your income increases, an inferior good is a good that's demand decreases when income increases. An example of a normal good, is easy to find, most goods are normal, meaning you want more of them when you have more money. An inferior good is something like fast food, as you earn more income, you will usually demand less of it.
