If an increase in income results in a decrease in the quantity demanded of a good,what is the good called
A)an inferior good
B)a necessity
C)a normal good
D)a luxury

Question

Quizplus · Accepted Answer

Inferior goods are goods that have a negative income elasticity of demand, which means that as income increases, the quantity demanded decreases. This is because as people's incomes rise, they tend to shift towards higher quality goods or substitutes for the inferior goods. Therefore, if an increase in income results in a decrease in the quantity demanded of a good, it is considered an inferior good.

If an Increase in Income Results in a Decrease in the Quantity