Question

With an increase in income, the consumption of which good, the consumer reduces ______.

With an increase in income, the consumption of which good reduces?

Options

• Inferior good

• Normal goods

• Both (a) and (b)

• Neither (a) nor (b)

Answer 1

With an increase in income, the consumption of which good, the consumer reduces inferior good.

Explanation:

As income increases, consumers typically reduce their consumption of inferior goods because they can now afford to purchase higher-quality or more expensive alternatives (normal goods).