All else equal, when income increases, this is reflected in a graph of the demand for an inferior good as:
A) a movement to the left along a demand curve.
B) a movement to the right along a demand curve.
C) an increase in demand.
D) a decrease in demand.

Question

Quizplus · Accepted Answer

An increase in income leads to a decrease in demand for inferior goods, as consumers opt for more expensive substitutes, shifting the demand curve to the left.

All Else Equal, When Income Increases, This Is Reflected in a Graph