Normal and inferior goods | Supply, demand, and market equilibrium | Microeconomics | Khan Academy

How the demand for some goods could actually go down if incomes go up

Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course

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[dandiaran]

I've been using Khan Academy since High School. Now I'm a Grad student (master's), and I keep coming back every time I need to study for my exams. Thank you for simplifying everything for us throughout these years, Sal!

[khoitrinh]

You just summarize all of my lectures in 5:55 mins. Give a bravo for awesome channel <3

[LividImp]

Q. Why do Yugos come with heated rear windows?
A. To keep your hands warm while you're pushing them.

[skatedude]

why do I even go to highschool? I could just sit at home watching these videos for 8 hours a day and then go and get a GED

[Mladjasmilic]

It isn't so bad . My family has one since '88 . It was bought my grandfather when my father pased his driving exam, I grew up with it . It survived bad Romanian gaosline during war (half gasoline, half kiwi die with wather ; gasoline die here is green) . Now I drive it, it is god car to have fun in, it goes off-road during picnics . 4 people can carry it around . And parts are found everywhere . Best of all, it has room for Ford Mondeo V6 .

[jada]

This is very helpful for me right now, because tomorrow I have level1 test.

[firecracker]

you are always the only one who can explain things a proper way !!

[PercivalHoward]

You have improved my life. Thank-you Khan Academy

[elitetech]

KEY TERMS IN THIS VIDEO:

1. The income effect: The effect where, generally, an increase in income causes an increase in the demand of a product

[rierwarrir]

It's Really great sir👍
Now I'm easily cracked up this type of questions in cgl papers 📃

[strellix]

You made my day by Forcing me to love economics :)

[HarjeetSingh-vemh]

Its so simple to understand thanks sir

[GDPWorking]

When income goes down, D decreases and Q increases for inferior goods.

[dareajayi]

Thank you so much...I recognize this voice from Khan Academy. I think you should audition for a comedian....I bet you go far.

[ИванПапулин]

You try to give the video more brightness it will be great if you do

[ChristinaKilgore]

I'd buy the yugo - it looks cool!
like a classic Jeep, but less off-roadish

[lekside]

Actually studied this in my Economics class in College

[piyushsehrawat]

Thanku sir
You have clear my all doubts

[kajendraprabamuthuvisayan]

Thank you so much. you have explained In a way that I can understand. 😊👍

[ZacharySmith]

@asdfgoogle With all due respect, he implied what you said. He said that the Yugo was an example of an "inferior good", which means that people would purchase it only if they could not afford something better: a "normal good".

So, people would question, "A $500 car? Yeah right. What's wrong with it?" but would still buy it if they couldn't afford better. However, if their income went up, per Khan's example, then more people could buy better cars, decreasing the demand/price for Yugos.