In economic terminology, an inferior good is a good
A) that no one will purchase.
B) that doesn't work properly.
C) that has no monetary value.
D) for which demand increases as income decreases.

Question

Quizplus · Accepted Answer

An inferior good is a good for which demand increases as income decreases. This is because people with lower incomes may find inferior goods to be more affordable or necessary than higher-quality goods. Examples of inferior goods include low-quality off-brand products, used cars, and discount fast food. Options A, B, and C are incorrect as they do not describe the characteristics of an inferior good.

In Economic Terminology, an Inferior Good Is a Good