Suppose that the quantity demanded of a product falls by 9% as incomes rise by 3%. What type of good is this product?
A) inferior
B) luxury
C) normal
D) substitute

Question

Quizplus · Accepted Answer

When the quantity demanded of a product falls as incomes rise, the product is considered an inferior good. This is because consumers tend to buy less of the inferior good as they can afford to purchase more desirable substitutes or higher-quality goods with their increased income.

Suppose That the Quantity Demanded of a Product Falls by 9