chapter three normal gooD A good or service whose consumption rises when income increases and falls when income decreases, price remaining constant.
INfERioR good A good or service whose consumption declines as income rises (and conversely), price remaining constant.
substitute goods Products or services that can be used in place of each other.
boomers reached their 20s in the 1970s, the demand for housing increased. Conversely, the aging of the baby boomers in the 1980s and 1990s was a factor in the relative slump in the demand for housing in those decades. Also, an increase in life expectancy has increased the demand for medical care, retirement communities, and nursing homes. And international trade agreements have reduced foreign trade barriers to Canadian farm commodities, thus increasing the demand for those products.
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