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

Answer 1

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.