Good Y is an inferior good.If the average income of those who buy good Y rises,the _____________ curve for good Y will shift ____________ resulting in a(n)_____________ in the equilibrium price of Y and a(n)____________ in the equilibrium quantity of Y.
A) supply; rightward; decrease; increase.
B) demand; leftward; decrease; decrease
C) demand; rightward; increase; increase
D) supply; leftward; increase; decrease
E) supply; leftward; increase; increase

Question

Quizplus · Accepted Answer

An inferior good is a good for which demand decreases as income rises. Therefore, as the average income of those who buy good Y rises, the demand curve for good Y will shift leftward, resulting in a decrease in the equilibrium price of Y and a decrease in the equilibrium quantity of Y.

Good Y Is an Inferior Good