Figure 3-1

-Refer to Figure 3-1.If the product represented is an inferior good, an increase in income would be represented by a movement from
A)A to B.
B)B to A.
C)D₁ to D₂.
D)D₂ to D₁.

Name: Figure 3-1 -Refer to Figure 3-1.If the product represented is an inferior good, an increase in income would be represented by a movement from A)A to B. B)B to A. C)D₁ to D₂. D)D₂ to D₁.
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Question

Figure 3-1
 
-Refer to Figure 3-1.If the product represented is an inferior good, an increase in income would be represented by a movement from
A)A to B. 
B)B to A. 
C)D₁ to D₂. 
D)D₂ to D₁.

Quizplus · Accepted Answer

An inferior good's demand decreases as income increases, so the demand curve shifts from D₂ to D₁.

Figure 3-1 -Refer to Figure 3-1.If the Product Represented Is an Inferior