An increase in incomes will lead to a decrease in the demand for an inferior product.

Question

Quizplus · Accepted Answer

An inferior product is one that consumers demand less of as their incomes rise. This is because as consumers' incomes increase, they can afford to buy superior or better-quality products, and they are less likely to choose an inferior product. Therefore, an increase in incomes usually leads to a decrease in the demand for an inferior product.

An Increase in Incomes Will Lead to a Decrease in the Demand