If movies are an inferior good, movie attendance will rise when consumer incomes fall.

Question

If movies are an inferior good, movie attendance will rise when consumer incomes fall.​

Quizplus · Accepted Answer

An inferior good is a good that people buy more of when their income decreases. Movie attendance can be considered as an inferior good because when people have less income, they may cut back on more expensive forms of entertainment like concerts or travel, and instead opt for cheaper entertainment options like movies. So, when consumer incomes fall, movie attendance is likely to rise.

If Movies Are an Inferior Good, Movie Attendance Will Rise