Phillip considers cheese an inferior good. What change will occur in a graph of Phillip's demand for cheese if his income increases?
A) a movement to the left along a demand curve
B) a movement to the right along a demand curve
C) an increase in demand
D) a decrease in demand

Question

Quizplus · Accepted Answer

An inferior good is one for which demand decreases as income increases, because consumers start buying more of a substitute good that they prefer. Therefore, if Phillip's income increases, his demand for cheese (an inferior good to him) will decrease, which is represented by a shift of the demand curve to the left, not a movement along the curve.

Phillip Considers Cheese an Inferior Good