Which of the following is not an inferior good?
A) navy beans
B) black and white television
C) cheap wine
D) used textbook
E) butter

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as consumer income rises, as people opt for higher-quality substitutes. Butter, unlike navy beans, black and white televisions, cheap wine, and used textbooks, is generally not considered an inferior good because its demand does not necessarily decrease as income rises. People may continue to buy butter or even buy more of it as their income increases, preferring it over margarine or other substitutes.

Which of the Following Is Not an Inferior Good