When income falls,the demand for an inferior goods
A)Increases.
B)Decreases.
C)Has a smaller change than the income change.
D)Stays the same.

Name: When income falls,the demand for an inferior goods A)Increases. B)Decreases. C)Has a smaller change than the income change. D)Stays the same.
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Question

Quizplus · Accepted Answer

When income falls, people tend to switch from normal goods to inferior goods as they become relatively cheaper. This leads to an increase in the demand for inferior goods.

When Income Falls,the Demand for an Inferior Goods