An increase in income will lead to an increase in demand for inferior goods.

Name: An increase in income will lead to an increase in demand for inferior goods.
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Question

Quizplus · Accepted Answer

According to the law of demand, as income increases, the demand for inferior goods decreases, and the demand for normal goods increases. Therefore, an increase in income will not lead to an increase in demand for inferior goods.

An Increase in Income Will Lead to an Increase in Demand