Asked by
Akira McCoy
on Oct 12, 2024Verified
Goods for which demand is indirectly (negatively) related to income are called
A) substitute goods.
B) complementary goods.
C) inferior goods.
D) normal goods.
Inferior Goods
Inferior goods are products whose demand decreases as consumer income rises, opposite to normal goods.
Demand
The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.
Income
Earnings acquired on a consistent basis through employment or investments.
- Understand the difference between normal goods and inferior goods as income levels change.
Verified Answer
NI
Learning Objectives
- Understand the difference between normal goods and inferior goods as income levels change.