Asked by

Kevin Morris
on Oct 12, 2024

verifed

Verified

As income falls,the demand for inferior goods

A) rises.
B) falls.
C) stays about the same.
D) cannot be determined.

Inferior Goods

Goods whose demand decreases when consumer income rises, opposite to normal goods, due to their lower quality.

Demand Rises

An increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Income Falls

A scenario where an individual or household experiences a reduction in their earnings from wages, investments, or other sources.

  • Discern the distinction between normal goods and inferior goods in relation to income changes.
verifed

Verified Answer

JT
Jessica TurneyOct 14, 2024
Final Answer:
Get Full Answer