Asked by Xandrei Lugay on Jun 10, 2024
Verified
If the demand for a good falls when income falls, then the good is called an inferior good.
Inferior Good
A type of good for which demand decreases as the income of individuals increases, inversely related to income levels.
- Understand the impact of income on demand for normal and inferior goods.
Verified Answer
ZK
Zybrea KnightJun 11, 2024
Final Answer :
False
Explanation :
When the demand for a good falls as income falls, the good is considered a normal good, not an inferior good. Inferior goods see an increase in demand when income falls.
Learning Objectives
- Understand the impact of income on demand for normal and inferior goods.
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