Asked by Aishah Khalea on Jul 21, 2024

verifed

Verified

If beans are an inferior good,a decrease in income will

A) cause rice to sell at a lower price.
B) increase the production of rice.
C) shift the demand curve for rice to the left.
D) shift the demand curve for rice to the right.

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, unlike normal goods, for which the opposite is observed.

Income

Earnings received by an individual or entity in exchange for labor or investment, typically expressed in monetary terms.

Demand Curve

A pictorial representation that maps out the correlation between a good's price and its demand over an allotted time.

  • Acquire knowledge about the categories of inferior and normal goods and the way income fluctuations affect their demand.
verifed

Verified Answer

MM
Melissa MailboyJul 21, 2024
Final Answer :
D
Explanation :
When income decreases, the demand for inferior goods, such as beans, increases because people switch from more expensive alternatives to cheaper options. This does not directly affect the price, production, or demand for rice unless rice is considered a substitute or complement in this context. However, the question does not specify the relationship between beans and rice, so the most direct inference is that a decrease in income leads to increased demand for an inferior good, not directly affecting rice's demand curve position without additional context.