Asked by Karielle Waller on Sep 24, 2024
A product can be classified as an inferior good if an increase in the income causes
A) A decrease in the quantity demanded
B) A decrease in demand
C) An increase in demand
D) An increase in the quantity demanded.
Inferior Good
A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.
Income
Money received on a regular basis from work, property, business, or investments.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.
- Differentiate between normal and inferior goods.
Learning Objectives
- Differentiate between normal and inferior goods.