Something Is an Inferior Good If the Demand for the Good

question 76

Multiple Choice

Something is an inferior good if the demand for the good

• A) increases as the consumer's income increases.
• B) increases as the consumer's income decreases.
• C) decreases as the price of a complement increases.
• D) decreases as the price of a substitute increases.
• E) decreases as the consumer's income decreases.

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain from the investment by its cost.

Turnover

In financial terms, it can also refer to the volume of business conducted over a period of time, such as sales turnover.

Operating Assets

Assets that are utilized in the daily operations of a business to generate revenue, excluding investment and non-operational assets.

Margin

The difference between the selling price of a product or service and its cost, often expressed as a percentage of the selling price.