Asked by Aishah Khalea on Jul 21, 2024
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.
Verified Answer
Learning Objectives
- Acquire knowledge about the categories of inferior and normal goods and the way income fluctuations affect their demand.
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