When there is an inferior goodan inferior good , an increasean increase in consumer income will result in the?

Question

Amir Lowe

Business

26 July, 15:35

When there is an inferior goodan inferior good , an increasean increase in consumer income will result in the?

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Answers (1)

Know the Answer?

Li · Answer 1

Answer: Decrease demand for the inferior good

Explanation:

Inferior goods are those goods that care consumed by the consumer when his income is too low. That is to say that the demand for an inferior good is negatively related to the income of the consumer. So, when income of the consumer increases, he will reduce his demand for the inferior good.

So, demand decreases as income increases for an inferior good.