Which of the following is likely to explain why the demand curve for baked beans, an inferior good, would shift to the right?
A) An increase in the price of white bread which is consumed with baked beans.
B) A fall in the average income level of consumers in the economy.
C) A restriction on imports of baked beans that increases the price.
D) An increase in the exports of baked beans to other countries.

Question

Quizplus · Accepted Answer

A fall in the average income level of consumers in the economy would likely cause the demand curve for an inferior good like baked beans to shift to the right. This is because as incomes decrease, consumers tend to buy more inferior goods, which are seen as more affordable alternatives to more expensive options.

Which of the Following Is Likely to Explain Why the Demand