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

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as income increases. This means that when people have more money, they tend to buy less of these goods. Salami is likely to be an inferior good since it is a cheaper meat product and people may shift to other more expensive meats when they have more money.

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