When the income of the consumer falls the impact on a price-demand curve of an inferior good is: (choose the correct alternative)
a. Shifts to the right.
b. Shifts of the left.
c. There is upward movement along the curve.
d. There is downward movement along the curve
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Solution
Shifts to the right.
Demand for inferior goods has an opposite relationship with consumer's income. If there is a decline in the income of the consumer, the demand for an inferior good rise. Therefore, the consumer demand curve shifts towards the right.
Concept: Demand
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