What is a distinguishing characteristic of an inferior good?
A)a negative price effect
B)a positive income effect
C)a positive substitution effect
D)a negative income effect
E)an upward-sloping demand curve

Question

Quizplus · Accepted Answer

An inferior good is a product whose demand decreases as consumer income increases. This means that when income rises, consumers are less likely to purchase the inferior good, indicating a negative income effect.

What Is a Distinguishing Characteristic of an Inferior Good