As incomes in Alberta fall people are drinking less craft beer and more beer produced by international brewers. Thus, an economist would consider beer produced by international brewers to be a(n)
A)normal good.
B)inferior good.
C)complementary good.
D)substitute good.

Question

Quizplus · Accepted Answer

When a decrease in income leads to an increase in demand for a good, it is called an inferior good. As the incomes of people in Alberta fall, they are switching from craft beer to international brewery-produced beer, indicating that craft beer is a normal good and international brewery-produced beer is an inferior good in this context.

As Incomes in Alberta Fall People Are Drinking Less Craft