Question

question 4 (10 points)
what term refers to a good for which demand will decrease as consumers income increases?

a) a discarded good

b) an inferior good

c) a normal good

d) a negative good

Explanation:

• A discarded good is not a standard economic term for this relationship.
• An inferior good is defined as a good where demand falls when consumer income rises, as consumers switch to higher-quality alternatives.
• A normal good has demand that increases as consumer income increases, which is the opposite of the described scenario.
• A negative good is not a standard economic classification for this income-demand relationship.

Answer:

b) an inferior good