Inferior goods are goods for which demand falls as income rises. These goods are often lower-quality or less expensive alternatives to higher-quality or more expensive goods. As consumers' income rises, they are able to afford better-quality goods and thus demand less of the inferior goods.

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An Inferior Good Is

Question 61

Multiple Choice

An inferior good is

A) generally of low quality.
B) purchased in the underground economy.
C) is damaged or referred to as a "second".
D) purchased in declining quantities as income rises.

Correct Answer: