Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 22

For three years in a row, income among consumers has increased. Alexander Machine Tool has had sales increases in each of these three years. Does Alexander Machine Tool produce inferior or normal goods Forecasts predict that income will continue to rise in the future. Should Alexander Machine Tool anticipate that demand for its products will continue to rise Explain.