Which of the Following Is True for an Inferior Good

question 48

Multiple Choice

Which of the following is true for an inferior good?

• A) Unlike for normal goods, as the price of an inferior good increases, the quantity demanded of the good falls.
• B) A larger proportion of those who buy inferior goods are likely to be those who earn
• C) The demand curve for inferior goods is upward sloping.
• D) Inferior goods are not likely to have many substitutes or complements.

---

Definitions:

Installment Note Payable

A debt instrument that requires a series of periodic payments to the lender over a specified period of time.

Interest Expense

The expenditure an entity incurs from borrowing funds during a certain period.

Notes Payable

Written agreements in which one party promises to pay another party a definite sum of money either on demand or at a specified future date.

Payment

The act of transferring money or other valuable items in exchange for goods, services, or to fulfill a legal obligation.