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

Question

Quizplus · Accepted Answer

An inferior good is a good for which demand decreases as income increases. This is because consumers are likely to switch to higher-quality alternatives as their income increases.

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