A good is inferior for a consumer if
A) it is never included in his or her consumption bundle.
B) its consumption rises when income rises.
C) its consumption falls when income rises.
D) some minimal level of the good must be consumed to assure the consumer's survival.

Question

Quizplus · Accepted Answer

A good is considered inferior if the consumer consumes less of it as their income increases. This is because as the consumer's income increases, they are able to afford better substitutes for the inferior good. Therefore, the consumption of the inferior good falls.

A Good Is Inferior for a Consumer If