-Refer to Exhibit 3-6.If a decrease in income causes the demand for good X to shift from D₁ to D₂,then good X is A) a normal good. B) an inferior good. C) a substitute good. D) a complementary good. E) a neutral good.

Question

Quizplus · Accepted Answer

If a decrease in income causes the demand for good X to shift from D₁ to D₂, then good X is an inferior good. This is because as income decreases, consumers are likely to switch to cheaper alternatives, thereby increasing the demand for inferior goods.