The Demand for an Inferior Good _____

question 89

Multiple Choice

The demand for an inferior good _____.

• A) is very low as these goods are generally of a lower quality
• B) decreases as the consumer's income increases
• C) is very high since these goods have few substitutes
• D) increases as the price of the good increases

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Definitions:

FOB Shipping Point

A term used in shipping where the buyer is responsible for the goods once they leave the seller's premises.

Freight Charges

The fees incurred for transporting goods from one location to another.

Double-declining-balance

A method of accelerated depreciation where an asset’s book value is reduced at double the rate of its straight-line depreciation.

Salvage Value

The anticipated worth of an asset upon its sale following the conclusion of its useful life.