As income rises, the demand for hamburger (an inferior good) _____, and the demand for steak (a normal good) ______.
A) increases; decreases
B) decreases; increases
C) remains the same; increases
D) increases; remains the same

Question

Quizplus · Accepted Answer

As income rises, the demand for an inferior good (like hamburger) typically decreases because people can afford better alternatives, while the demand for a normal good (like steak) increases as people have more disposable income to spend on higher-quality items.

As Income Rises, the Demand for Hamburger (An Inferior Good)