-Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A) an increase in the price of Good A
B) a decrease in the price of Good A
C) a decrease in consumers' income
D) an increase in consumers' income

Question

-Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A) an increase in the price of Good A 
B) a decrease in the price of Good A 
C) a decrease in consumers' income 
D) an increase in consumers' income

Quizplus · Accepted Answer

A decrease in consumers' income would most likely cause the demand for an inferior good to increase, as these goods are typically more in demand when income levels are lower.

-Refer to the Above Figure