As consumers' incomes decrease, the demand curve for bologna sandwiches shifts to the right. Therefore bologna sandwiches are:
A)normal goods.
B)complement goods.
C)substitute goods.
D)inferior goods.

Question

Quizplus · Accepted Answer

When the demand for a product increases as income decreases, that product is considered an inferior good. In this case, as consumers' incomes decrease, they are more likely to choose cheaper food options like bologna sandwiches, resulting in an increase in demand for bologna sandwiches. Therefore, bologna sandwiches are inferior goods.

As Consumers' Incomes Decrease, the Demand Curve for Bologna Sandwiches