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

Question

Quizplus · Accepted Answer

When the income of individuals decreases, their demand for certain goods may increase. These goods are known as inferior goods. As sardines are a type of less expensive fish, their demand may increase when people have less income to spend on higher-priced fish. Therefore, sardines are considered an inferior good.

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