When income increases, the demand curve for an inferior good
A) shifts to the right.
B) shifts to the left.
C) moves up along the demand curve for the product.
D) remains constant.

Question

Quizplus · Accepted Answer

Inferior goods are goods that consumers demand less of as their income increases. Therefore, when income increases, the demand for inferior goods decreases, causing a leftward shift of the demand curve.

When Income Increases, the Demand Curve for an Inferior Good