If income falls and the demand for hamburgers increases, this suggests that a hamburger is a(n) _____ good.
A) normal
B) substitute
C) inferior
D) complementary

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand increases when consumer income decreases. This is because consumers turn to less expensive alternatives as their purchasing power declines. In this case, the increase in demand for hamburgers as income falls suggests that hamburgers are considered an inferior good.

If Income Falls and the Demand for Hamburgers Increases, This