Exhibit 3-6

-Refer to Exhibit 3-6.If a decrease in income causes the demand for good X to shift from D? to D?,then good X is

Question

Exhibit 3-6
 
-Refer to Exhibit 3-6.If a decrease in income causes the demand for good X to shift from D? to D?,then good X is

Quizplus · Accepted Answer

The fact that a decrease in income causes the demand for good X to shift from D1 to D2 indicates that good X is an inferior good. This is because as consumers' incomes decrease, the demand for inferior goods increases, while the demand for normal goods decreases.

Exhibit 3-6 -Refer to Exhibit 3-6.If a Decrease in Income Causes the in Income