The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-An inferior good or service is any good or service for which:
A)an increase in price causes an increase in the quantity demanded.
B)a decrease in price causes an increase in demand.
C)an increase in price causes a decrease in the quantity demanded.
D)an increase in the amount consumed causes a decrease in marginal utility.
E)an increase in income causes a decrease in demand.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-An inferior good or service is any good or service for which:
A)an increase in price causes an increase in the quantity demanded. 
B)a decrease in price causes an increase in demand. 
C)an increase in price causes a decrease in the quantity demanded. 
D)an increase in the amount consumed causes a decrease in marginal utility. 
E)an increase in income causes a decrease in demand.

Quizplus · Accepted Answer

An inferior good or service is defined as a type of good for which demand decreases as the income of the consumer increases. This is because consumers tend to opt for higher-quality goods or services as their purchasing power improves.

The Figure Given Below Shows the Demand Curves for Five