Asked by Christopher Severson on May 01, 2024
Verified
An inferior good is one for which a(n) _____ in buyers' incomes causes a(n) _____.
A) increase;increase in demand
B) increase;increase in quantity demanded
C) increase;decrease in demand
D) decrease;decrease in demand
Inferior Good
Goods whose demand declines as consumer income rises, distinct from normal goods where demand increases with higher income.
Buyers' Incomes
The total earnings of consumers which influence their purchasing power and demand in the marketplace.
- Perceive the differentiation amongst normal goods, inferior goods, substitute goods, and complements.
Verified Answer
KJ
Khalid JijakliMay 03, 2024
Final Answer :
C
Explanation :
An inferior good is one where an increase in buyers' incomes leads to a decrease in demand, as consumers opt for more expensive substitutes.
Learning Objectives
- Perceive the differentiation amongst normal goods, inferior goods, substitute goods, and complements.
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