If the demand of a good is inversely related to income, it must be
A) a bad good.
B) an inferior good.
C) a normal good.
D) an everyday product.

Question

Quizplus · Accepted Answer

When the demand of a good is inversely related to income, it is known as an inferior good. This means that as income increases, the demand for the good decreases as consumers switch to higher-quality alternatives. A bad good is a product that people don't want to buy, regardless of their income level. A normal good is one where demand increases as income increases. Everyday products are goods that are commonly used but their demand is not necessarily related to income.

If the Demand of a Good Is Inversely Related to Income