An inferior good is:
A) any good of low quality.
B) one that consumers buy less of at a higher price.
C) one that consumers buy less of as their income rises.
D) one that has few substitutes.
E) any good made with inexpensive labor.

Question

Quizplus · Accepted Answer

An inferior good is a good that consumers buy less of as their income rises. This is because, as a consumer's income increases, they are more likely to purchase higher-quality goods or switch to substitute goods. An example of an inferior good is generic or store-brand products, which consumers may choose when their budget is tight but are less likely to buy when they have more disposable income.

An Inferior Good Is