Raphael consumes only cheese and crackers. True or False: Cheese and crackers can both be inferior goods for Raphael.   True or  False   Suppose that cheese is a normal good for Raphael while crackers are an inferior good.   If the price of cheese falls, Raphael's consumption of crackers   (decrese or increase) ?  and his consumption of cheese  ( decrese or increase)  ?  .

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.