Asked by Khánh Tr??ng on Jul 17, 2024
Verified
An inferior good is
A) generally of low quality.
B) purchased in the underground economy.
C) is damaged or referred to as a "second".
D) purchased in declining quantities as income rises.
Inferior Good
A product whose demand decreases as consumers' income levels increase, opposite to normal goods.
Income Rises
An increase in the amount of money received by individuals or households, often measured on an annual basis.
- Understand the definition and characteristics of inferior goods.
Verified Answer
NM
Nathan MarcusJul 18, 2024
Final Answer :
D
Explanation :
Inferior goods are goods for which demand falls as income rises. These goods are often lower-quality or less expensive alternatives to higher-quality or more expensive goods. As consumers' income rises, they are able to afford better-quality goods and thus demand less of the inferior goods.
Learning Objectives
- Understand the definition and characteristics of inferior goods.