How will a change in income affect the demand for an inferior product?
A)The demand will increase if the income of consumers increases.
B)The demand will increase if the income of consumers decreases.
C)The demand for an inferior product is not affected by consumer incomes.
D)The demand will remain the same but the quantity demanded will increase if income decreases.

Question

Quizplus · Accepted Answer

An inferior product is one whose demand decreases as the consumer's income increases. Therefore, if the income of consumers decreases, the demand for an inferior product will increase.

How Will a Change in Income Affect the Demand for an Inferior