Which of the following items is an inferior good?
A)Low-quality frozen meals
B)University textbooks
C)Restaurant a la carte dinners
D)Toll roads

Question

Quizplus · Accepted Answer

An inferior good is a good whose demand decreases as income increases. Low-quality frozen meals are typically cheaper and of lower quality compared to fresh meals, and as consumers' income increases, they are more likely to opt for higher-quality and fresher alternatives, which makes frozen meals an inferior good.

Which of the Following Items Is an Inferior Good