If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
A)an inferior good.
B)a neutral good.
C)a necessity.
D)a normal good.

Question

Quizplus · Accepted Answer

When an increase in income leads to a decrease in demand for a certain good, that good is considered an inferior good. Popcorn is often seen as an inferior good because as income increases, people tend to look for more premium snack options.

If an Increase in Income Leads to a Decrease in the Demand