An inferior good is one for which an increase in income causes a(n)

Name: An inferior good is one for which an increase in income causes a(n)
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Question

Quizplus · Accepted Answer

An inferior good is a good for which demand decreases when income increases. This means that when people have more money, they will choose to purchase higher-quality goods instead of the inferior ones. Thus, an increase in income causes a decrease in demand for inferior goods.

An Inferior Good Is One for Which an Increase in Income