As consumers' incomes increase, the demand for ground beef decreases. Ground beef is called a(n):
A)normal good.
B)complement good.
C)substitute good.
D)inferior good.

Question

Quizplus · Accepted Answer

This is an example of an inferior good because as consumers' incomes increase, they tend to substitute more expensive meats for ground beef, which is a cheaper alternative. Therefore, as income rises, the demand for ground beef decreases.

As Consumers' Incomes Increase, the Demand for Ground Beef Decreases