An item whose demand rises as people's incomes fall is known as a(n) _____ good.

Question

Quizplus · Accepted Answer

An inferior good is a type of good whose demand declines as the level of income or real GDP in the economy rises. In other words, people buy more of the inferior good when their income is lower and buy less of it as their income increases. Examples of inferior goods include low-quality or basic food items, used cars, and public transportation.

An Item Whose Demand Rises as People's Incomes Fall Is