Asked by Lori
Since household incomes have risen over the last 1oo years and stds of living have increased, but there has been a decline in children. Does this indicate that children are an inferior good?
Answers
Answered by
Ms. Sue
Yes.
http://economics.about.com/cs/economicsglossary/g/inferior_good.htm
http://economics.about.com/cs/economicsglossary/g/inferior_good.htm
Answered by
Lori
Thanks. I am a bit confused though. To me it seems that children can be either a normal good or inferior depending on the situation. Are you saying that Malthusians model of fertility is no longer valid?
Answered by
Ms. Sue
Children become an inferior good when the number of births per woman declines.
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