Suppose your income falls from $35,000 to $33,000 and that your quantity demanded of a good increases from 40 to 55 units. You consider the good to be a(n) _____ good.
A) normal
B) substitute
C) inferior
D) luxury

Question

Quizplus · Accepted Answer

When income falls and the quantity demanded of a good increases, the good is considered an inferior good. This is because consumers buy more of the good when their income decreases, indicating they view it as a less desirable substitute for more expensive options.

Suppose Your Income Falls from $35,000 to $33,000 and That