Inferior goods are those where as consumer incomes increase

Inferior goods are those where:

as consumer incomes increase, demand decreases

as consumer incomes increase, demand increases

as the price of the good increases, demand decreases

as the price of the good increases, demand increases

Solution

As consumer income increase, demand decreases.

Explanation:

The Inferior goods are those goods the income effect on whose demand is negative i.e. with the increase in income, the consumer shifts the demand to superiors or normal goods, hence decline in the demand of inferior goods.

Inferior goods are those where: as consumer incomes increase, demand decreases as consumer incomes increase, demand increases as the price of the good increases

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site