An increase in consumer income results in:

Name: An increase in consumer income results in:
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Question

Quizplus · Accepted Answer

When consumer income increases, the demand for a good typically increases as well. However, if the good is an inferior good, which is a good for which demand decreases as consumer income increases (e.g. generic brands), the opposite occurs and the demand for the good decreases. Therefore, an increase in consumer income results in a decrease in demand for an inferior good (choice B).

An Increase in Consumer Income Results In