An increase in Abigail's income decreases her demand for used cars. For her, used cars are
A) a normal good.
B) an inferior good.
C) a substitute good.
D) a complement to any good.

Question

Quizplus · Accepted Answer

Used cars are considered an inferior good for Abigail because her demand for them decreases as her income increases. Inferior goods have this characteristic, where demand falls as consumer income rises, in contrast to normal goods, where demand increases with income.

An Increase in Abigail's Income Decreases Her Demand for Used