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When is a good called an inferior good? - Economics

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Question

When is a good called an inferior good?

Very Short Answer
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Solution

Inferior goods are those for which there are superior choices. Inferior goods are ones whose demand increases as consumer income decreases and decreases when income increases for consumers.

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Chapter 2: Demand and Law of Demand - TEST YOURSELF QUESTIONS [Page 26]

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Frank Economics [English] Class 12 ISC
Chapter 2 Demand and Law of Demand
TEST YOURSELF QUESTIONS | Q 7. | Page 26
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