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Question
If a good is inferior good, then purchases of that good will decrease when ______.
Options
The supply of it increases
Population increases
Income increases
The price of a substitute rises
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Solution
If a good is inferior good, then purchases of that good will decrease when income increases.
Explanation:
For an inferior good, as income increases, consumers typically reduce their purchases of that good and instead buy more expensive or higher-quality alternatives.
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