Turnips are an inferior good. If nothing else changes, a rise in the price of turnips causes
A) a leftward shift in the demand curve for turnips.
B) a rightward shift in the demand curve for turnips.
C) a leftward shift in the supply curve of turnips.
D) a rightward shift in the supply curve of turnips.
E) none of the above.

Question

Quizplus · Accepted Answer

The rise in the price of turnips does not cause the demand or supply curve to shift; instead, it results in a movement along the demand curve. Shifts in demand or supply curves are caused by factors other than the price of the good itself, such as changes in income, preferences, or the prices of related goods.

Turnips Are an Inferior Good