If the economy is in recession and the number of used baby clothing stores increases, then:
A) used baby clothes are a necessity.
B) used baby clothes are an inferior good.
C) used baby clothes are a normal good.
D) new baby clothes are a luxury.
E) used baby clothes have price-elastic demand.

Question

Quizplus · Accepted Answer

During a recession, consumers tend to buy more inferior goods, which are goods that see increased demand as income falls. The increase in used baby clothing stores suggests that used baby clothes are an inferior good.

If the Economy Is in Recession and the Number of Used