An Inferior Good Is Defined as a Good for Which

question 172

Multiple Choice

An inferior good is defined as a good for which demand decreases when

• A) the price increases.
• B) income increases.
• C) the price decreases.
• D) income decreases.

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Definitions:

Patent Scarcity

Refers to the situation where there is a lack of available patents, often due to high competition or rigorous patenting criteria which can limit innovation.

Natural Scarcity

A situation where resources are limited in availability due to natural conditions, not enough to meet unlimited human wants.

Usury Laws

Usury Laws are regulations governing the interest rate that can be charged on a loan, designed to protect consumers from excessively high rates.

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government or other authority.