There are a number of goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good that experienced this transition is a cathode ray tube (CRT) television, also known as a tube television. In the 1980s, more income for a household usually resulted in more CRT TVs being purchased. Today, more CRT TVs are purchased by households that have experienced a reduction in income. Why does this happen?

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.