Question

In China, household income grew by an average of 8% between 2010 and 2016. This
contributed to a rise in demand for mobile (cell) phones, making China the world’s largest
mobile phone market.
a Illustrate the change in demand for mobile phones in China on a diagram.
b Is a mobile phone a normal or an inferior good? Explain your answer

Answer 1

Answer:

China, household income grew by an average of 8% between 2010 and 2016. This

contributed to a rise in demand for mobile (cell) phones, making China the world’s largest

mobile phone market.

a Illustrate the change in demand for mobile phones in China on a diagram.

b Is a mobile phone a normal or an inferior good? Explain your answer