Asked by
Kevin Morris
on Oct 12, 2024Verified
As income falls,the demand for inferior goods
A) rises.
B) falls.
C) stays about the same.
D) cannot be determined.
Inferior Goods
Goods whose demand decreases when consumer income rises, opposite to normal goods, due to their lower quality.
Demand Rises
An increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.
Income Falls
A scenario where an individual or household experiences a reduction in their earnings from wages, investments, or other sources.
- Discern the distinction between normal goods and inferior goods in relation to income changes.
Verified Answer
JT
Learning Objectives
- Discern the distinction between normal goods and inferior goods in relation to income changes.