Over time some goods change from being a normal good to an i

Over time, some goods change from being a normal good to an inferior good, or from being an inferior good to a normal good. One example is a CRT television, also known as a tube television. In the 1980s, households with more income usually purchased CRT TVs. Today, more CRT TVs are purchased by households with less income. What has happened to CRT TVs? Choose one: 0 A CRT TVs have become obsolete. B. A CRT TV has become an inferior good because people buy more of this type of TV when they have lower incomes. C. ACRTTV has become a normal good because buyers now believe it to be of a lower quality than other types of TV D. ACRTTV has become an inferior good because as consumers gain more purchasing power, they purchase more of the product.

Solution

B) A CRT TV has become an inferior good because people buy more of this type of TV when they have lower income.

Normal goods are those goods whose demand increases with increase in income and vice-versa.

Inferior goods are those goods whose demand decreases with increase in income and vice-versa.

In this case, when income of consumer decreases then demand of CRT TV increases which means this is inferior good.