Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Good X is an inferior good and good Y is a substitute for X.Income rises,the demand for X falls,the price of X falls,and the demand for Y rises.
B) Good X is an inferior good and good Y is a substitute for X.Income rises,the demand for X falls,the price of X falls,and the demand for Y falls.
C) Good X is an inferior good and good Y is a substitute for X.Income falls,the demand for X rises,the price of X rises,and the demand for Y falls.
D) Good X is an inferior good and good Y is a substitute for X.Income rises,the quantity demanded of X rises,the price of X rises,and the demand for Y falls.
E) none of the above

Question

Quizplus · Accepted Answer

According to the law of demand, when income rises, the demand for inferior goods falls. Good X is assumed to be an inferior good in this scenario. Additionally, a substitute good for X is Y, meaning that when the price of X falls, the demand for Y falls. Therefore, the correct sequence is: income rises -> demand for X falls -> price of X falls -> demand for Y falls.

Which of the Following Statements Represents a Correct and Sequentially