Asked by Bipul TIWARI on Jun 06, 2024
Verified
If the demand for sardines increases as income decreases, sardines are a(n)
A) normal good.
B) inferior good.
C) substitute good.
D) complementary good.
Inferior Good
A type of good whose demand decreases when the income of consumers increases.
Normal Good
An item whose demand escalates as the income of consumers increases, and contracts when their income decreases.
- Acquire knowledge on primary aspects of consumer behavior and market demand, encompassing the law of demand and the distinction among diverse types of goods.
Verified Answer
GC
Giovanni ChermontJun 11, 2024
Final Answer :
B
Explanation :
Sardines are considered an inferior good because the demand for them increases as income decreases, indicating that consumers turn to them when they cannot afford their preferred alternatives.
Learning Objectives
- Acquire knowledge on primary aspects of consumer behavior and market demand, encompassing the law of demand and the distinction among diverse types of goods.
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