If the economy is projected to expand in the near future, households will have more income to spend on the buying of goods. This means, therefore, that demand for normal goods will increase and managers will use that information to decide to increase or expand their production. Similarly, their demand for inferior goods will decrease with more household income. Managers will, therefore, decide to reduce production in the near future of inferior goods.

Economic growth affects normal and lower demand for commodities as it leads to an increase in consumer income. For normal commodities, an increase in income leads to an increase in demand, with demand for lower commodities decreasing. Managers will, therefore, use this information to take appropriate production decisions.