If incomes are rising, in the market for an inferior good,
A)its price will rise and the quantity exchanged will rise.
B)its price will rise and the quantity exchanged will fall.
C)its price will fall and the quantity exchanged will rise.
D)its price will fall and the quantity exchanged will fall.

Question

If incomes are rising, in the market for an inferior good,
A)​its price will rise and the quantity exchanged will rise.
B)​its price will rise and the quantity exchanged will fall.
C)​its price will fall and the quantity exchanged will rise.
D)​its price will fall and the quantity exchanged will fall.

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as consumer income rises, leading to a fall in both the price and quantity exchanged as consumers shift their purchasing to more desirable substitutes.

If Incomes Are Rising, in the Market for an Inferior