A good is inferior if an increase in consumer income, other things being constant, causes less of the good to be consumed at every price.

Name: A good is inferior if an increase in consumer income, other things being constant, causes less of the good to be consumed at every price.
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Question

Quizplus · Accepted Answer

This is the definition of an inferior good. As consumer income increases, they switch to purchasing more expensive, higher quality goods, leading to a decrease in demand for inferior goods.

A Good Is Inferior If an Increase in Consumer Income