An inferior good is one that:
A) is of low quality or not very durable.
B) gets poor reviews from objective, independent evaluators.
C) no consumers are willing to buy.
D) experiences decreased demand when income increases.

Question

Quizplus · Accepted Answer

An inferior good is a type of good for which demand decreases as the level of income or real gross domestic product (GDP) in the economy increases. In other words, when people's incomes increase, they tend to switch to higher quality, more expensive goods, and demand less of the inferior good. This means that the demand for an inferior good is inversely related to income.

An Inferior Good Is One That