For an inferior good, the quantity demanded
A) responds directly to changes in income.
B) rises when income rises.
C) falls when income falls.
D) rises when income falls.
E) does not change when income rises or falls.

Question

Quizplus · Accepted Answer

In the case of an inferior good, the quantity demanded rises when income falls and vice versa. This is because consumers opt for cheaper alternatives when their income falls, leading to an increased demand for inferior goods.

For an Inferior Good, the Quantity Demanded