Assume that it is predicted that, for the years after you graduate from university, the entire economy will experience a long period of recession during which people's incomes will decrease. What type of industry would be the best for you to find employment in if this prediction is correct? An industry that produces a product that
A) is a complement.
B) is income inelastic.
C) is income elastic.
D) is inferior.
E) None of these industries.

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand increases when consumer income decreases. During a recession, when incomes are falling, consumers tend to shift their spending towards cheaper alternatives or inferior goods, making industries producing such goods potentially more stable or even thriving in such economic conditions.

Assume That It Is Predicted That, for the Years After