What types of goods have compensated demand curves that slope downwards?
A) Normal goods only.
B) Inferior goods only.
C) Giffen goods only.
D) All types of goods.

Question

Quizplus · Accepted Answer

Compensated demand curves, which adjust for changes in income to isolate the substitution effect, generally slope downwards for all types of goods, reflecting the basic economic principle that as the price of a good decreases, the quantity demanded for it increases, holding utility constant.

What Types of Goods Have Compensated Demand Curves That Slope