A good is inferior for a consumer if
A)its consumption rises when income rises.
B)its consumption falls when income rises.
C)the assumption of "more is always preferred to less" holds.
D)some minimal level of the good must be consumed to assure the consumer's survival.
E)it is never included in his or her consumption bundle.

Question

Quizplus · Accepted Answer

A good is inferior if its consumption falls when income rises. This means that as a consumer's income increases, they will switch to purchasing more expensive or higher-quality substitutes, resulting in a decrease in demand for this particular good.

A Good Is Inferior for a Consumer If