A product can be classified to be an inferior good if an increase in the income of buyers causes
A)A decrease in quantity demanded
B)A decrease in demand
C)An increase in demand
D)An increase in quantity demanded.

Question

Quizplus · Accepted Answer

An inferior good is a product whose demand decreases as the income of buyers increases. When buyers' income increases, they tend to shift to higher-quality goods, making them purchase less of the inferior good. As a result, an increase in income will cause a decrease in quantity demanded, making choice A the best answer.

A Product Can Be Classified to Be an Inferior Good