If a Good Is an Inferior Good, Then Purchases of That

question 431

Multiple Choice

If a good is an inferior good, then purchases of that good will decrease when

• A) the demand for it increases.
• B) population increases.
• C) income increases.
• D) the price of a substitute rises.

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Definitions:

Acquired-Needs Theory

A motivational model that suggests people's needs are acquired over time and are shaped by life experiences, including needs for achievement, affiliation, and power.

ERG Theory

is a motivational theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting that more than one need can be motivational at the same time.

Need for Power

A personal drive and motivation to influence, control, or have authority over others.

Personal Power

The influence or authority an individual has over others stemming from personal traits, skills, or relationships, rather than from formal positions of authority.