If income decreases and the consumption of a certain good increases, that good is considered a(n):
A) substitute good.
B) complementary good.
C) normal good.
D) inferior good.

Question

Quizplus · Accepted Answer

When income decreases and consumption of a certain good increases, it implies that the good is an inferior good. Inferior goods are those for which demand increases as income decreases.

If Income Decreases and the Consumption of a Certain Good