Answer:
The Video recorders are inferior goods.
Step-by-step explanation:
As [tex]Q_{v} =134-1.07Pf+46Pm-2.1Pv-5I[/tex]
where;
The price of the recorders films are increasing by a term 1.07 which gives that the Price is increasing by a little. Also adding the Price of video recorder is increasing by a factor 2.1 and the Revenue or income is increasing by a term 5 (Which is high) so, revenue and price are increasing leaving the quality of the voice recorder decreasing by a large margin for maintaining the balance.
As
[tex]Revenue =price*Quality[/tex]
So, in conclusion the quality decreases and thus the video recorders are inferior goods.
