Paul's income declines and as a result, he buys more corn. Is corn an inferior or normal good. What happens to Paul's demand curve for for corn?
Corn is likely an inferior good in this scenario because as Paul's income declines, he purchases more of it. This is typical behavior for inferior goods, as consumers will switch to cheaper alternatives when their budget constraints tighten.
As a result of Paul purchasing more corn, his demand curve for corn will shift to the right. This means that he will demand more corn at every price level compared to when his income was higher.