Razak, instead of demanding more, reduced the demand of vegetable ghee as his salary increased.
Answers
Answer:
As vegetables are considered as necessity goods and the amount of consuming necessity goods will be mostly constant,So when income increase people will shift to buy the luxury goods.
Vegetable ghee can be considered as an inferior good and the person could shift to other alternatives.
Explanation: The opposite of normal goods are inferior goods. As consumers' incomes rise, demand for inferior items decreases.
Over put it another way, if the economy develops and salaries grow, consumers would prefer a more expensive option to inferior ones.
Consequently, People spend a bigger proportion of their income on luxury products as their income rises, whereas they spend the same or less on regular and inferior goods as their income rises.
A special good, on the other hand, can be a normal good for one person but an inferior or luxury item for another.
Therefore, vegetable ghee can be considered as an inferior good and the person could shift to other alternatives.