Answer:
Demand for normal goods would DECREASE and demand for inferior goods would INCREASE
Explanation:
DEMAND is defined as willingness and desire of the consumer to purchase good and services at any given price. When the supply of a product rises, the price is reduced and there would be increase in demand.
INFERIOR GOODS are goods in which when there is rise in the income of the consumer, the demand for it will increase while
NORMAL GOODS are good that the demand increase as the as the consumer income increase. And also there exist a relationship between demand curve and income changes.
Therefore When a large factory closed in the town of Greenville, income fell for many residents. As a result, demand for normal goods would decrease because there is a fall in the income of the residents and demand for inferior goods will increase because they could not afford normal goods
