When consumers' incomes increase, the price of an inferior product or service rises.

Name: When consumers' incomes increase, the price of an inferior product or service rises.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When consumers' incomes increase, the demand for inferior products or services may decrease, leading to a decrease in their price rather than an increase. The price of an inferior product or service may rise if there are supply constraints or other factors at play, but income alone is not necessarily the determining factor.

When Consumers' Incomes Increase, the Price of an Inferior Product