4.4 Market Effects of Changes in Demand

-Figure 4.3 illustrates the demand for tacos. Assume tacos are an inferior good. An increase in income would bring about a movement from

Question

4.4 Market Effects of Changes in Demand
 
-Figure 4.3 illustrates the demand for tacos. Assume tacos are an inferior good. An increase in income would bring about a movement from

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as income increases. Moving from D2 to D1 represents a decrease in demand, which aligns with the behavior expected when income increases for an inferior good like tacos.