An inferior good is one for which
A) demand increases as income increases.
B) demand decreases as income increases.
C) the demand curve is vertical.
D) the demand curve slopes up.

Question

Quizplus · Accepted Answer

An inferior good is one for which demand decreases as income increases. This is because, as people's income increases, they tend to switch to higher-quality substitutes, which are generally considered superior goods. Examples of inferior goods include fast food, generic brands, and public transportation.

An Inferior Good Is One for Which