If the demand for a product increases as the result of a decline in income, it can be concluded that the
A) product is an inferior good.
B) demand for the product is inelastic.
C) price elasticity of demand for the product equals unity.
D) demand for the product is elastic.

Question

Quizplus · Accepted Answer

An inferior good is one for which demand increases when consumer income falls, as consumers opt for cheaper alternatives.

If the Demand for a Product Increases as the Result