Which of the Following Decreases the Demand for an Inferior

question 91

Multiple Choice

Which of the following decreases the demand for an inferior good?

• A)A decrease in the price of a complement
• B)A decrease in income
• C)An increase in the price of a substitute
• D)An increase in income

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Definitions:

New Products

Items that have been recently introduced to the market, offering new features, benefits, or technological advancements.

Marginal Cost

The cost added by producing one additional unit of a product or service, essential for understanding profitability and production efficiency.

R&D Expenditures

Funds allocated towards research and development activities by businesses, government, or organizations.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the financial market.