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11 October, 01:21

If product Y is an inferior good, a decrease in consumer incomes will rev:

A. make buyers want to buy less of product Y.

B. shift the demand curve for product Y to the right.

C. shift the demand curve for product Y to the left.

D. not affect the sales of product Y.

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Answers (1)
  1. 11 October, 01:23
    0
    Answer: Option (B) is correct.

    Explanation:

    Inferior good is a good whose demand is inversely related with the consumers income. This means that if there is an increase in the income of the consumer then as a result demand for normal good increases but demand for inferior goods decreases.

    On the other hand, if there is a decrease in the income of the consumer then as a result demand for normal good decreases but demand for inferior goods increases.

    Hence, decrease in consumer incomes will increase the demand of product Y and the demand curve for product Y to the right.
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Home » Business » If product Y is an inferior good, a decrease in consumer incomes will rev: A. make buyers want to buy less of product Y. B. shift the demand curve for product Y to the right. C. shift the demand curve for product Y to the left. D.
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