In a two-good world,one good-but not both-can be inferior.

Question

Quizplus · Accepted Answer

In a two-good world, it is possible for one good to be inferior while the other remains normal. An inferior good is a good that experiences a decrease in demand as consumer income increases. This typically happens with goods that are seen as lower quality or less desirable, such as generic brands or fast food. The other good in the two-good world would still be a normal good, meaning that demand would increase as consumer income increases.

In a Two-Good World,one Good-But Not Both-Can Be Inferior