When Tom's income decreases, he purchases more hamburgers. We can conclude that for Tom, hamburger is a(n) _______ good.

Question

Quizplus · Accepted Answer

When Tom's income decreases and he starts purchasing more hamburgers, it indicates that hamburgers are an inferior good for Tom. This means that as his income decreases, he switches from buying more expensive goods (such as steak) to cheaper goods like hamburgers.

When Tom's Income Decreases, He Purchases More Hamburgers