Assume that as the price of cauliflower falls the income effect causes consumers to buy less cauliflower.We can conclude that cauliflower is:

Question

Quizplus · Accepted Answer

An inferior good is a good for which the demand decreases as income of the consumer increases. As the price of cauliflower falls, the consumer's purchasing power increases, leading to a decrease in demand for cauliflower. Therefore, cauliflower is an inferior good.

Assume That as the Price of Cauliflower Falls the Income