If an Increase in Income Leads to a Decrease in the Demand

question 64

Multiple Choice

If an increase in income leads to a decrease in the demand for a good, then the good is said to be:

• A) normal.
• B) a luxury.
• C) inferior.
• D) a staple or necessity.

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Definitions:

Financial Gain

The increase in monetary resources or wealth, typically as a result of investment or business activity.

Misinformation

False or inaccurate information, often spread without malicious intent, that is presented as fact.

Paper Mills

Websites that sell prewritten or custom-written research papers to students.

Custom-Written

Describes software or code that has been written specifically for a particular requirement or customer, as opposed to off-the-shelf software.