Question

When income of the consumer falls, the impact on price-demand curve of an inferior good is ______.

Options

• Shifts to the right

• Shifts to the left

• There is upward movement along the curve

• There is downward movement along the curve

Answer 1

When income of the consumer falls, the impact on price-demand curve of an inferior good is shifts to the right.

Explanation:

Demand for an inferior good rises when income falls, shifting its demand curve rightward. A change in income is not shown as movement along the curve.