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If the Income of a Consumer Increases, Discuss Briefly Its Likely Impact on the Demand for a Inferior Good, Good X. - Economics

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Short Note

If the income of a consumer increases, discuss briefly its likely impact on the demand for a inferior good, Good X.

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Solution

Inferior goods are those which are low in quality. The demand for such goods share a negative relationship with the income such that the demand for inferior goods will decrease as the income increases and vice-versa. This is because with an increase in income, the consumers will now shift to better quality goods. So, the demand for inferior goods will decrease with an increase in income.

Concept: Demand
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