An inferior good is one for which a(n)_____ in buyers' incomes causes a(n)_____.
A) increase;increase in demand
B) increase;increase in the quantity demanded
C) increase;decrease in demand
D) decrease;decrease in demand

Question

Quizplus · Accepted Answer

An inferior good is a good for which an increase in income causes a decrease in demand. Therefore, a decrease in buyers' incomes would cause an increase in demand for inferior goods. This is because as incomes decrease, people tend to switch to cheaper alternatives, which may be inferior goods. Thus, the correct answer is C.

An Inferior Good Is One for Which A(n)_____ in Buyers