When the income-consumption curve is backward-bending to the left,the good represented on the X-axis must be _____.
A)a normal good
B)an inferior good
C)a Giffen good
D)an economic bad

Question

Quizplus · Accepted Answer

An inferior good is a good for which demand decreases as income increases. When the income-consumption curve is backward-bending to the left, it implies that as income rises, the consumer shifts to consuming more of inferior goods and less of normal goods. Therefore, the good represented on the X-axis must be an inferior good.

When the Income-Consumption Curve Is Backward-Bending to the Left,the Good