If a decrease in the price of a good causes a rightward shift of the demand curve for that good, then it is an inferior good.

Question

Quizplus · Accepted Answer

A decrease in price would typically cause a movement along the demand curve, not a shift. A rightward shift of the demand curve would indicate an increase in demand, which is typical of a normal good rather than an inferior good. Inferior goods experience an increase in demand when income decreases, causing the demand curve to shift rightward.

If a Decrease in the Price of a Good Causes