An Inferior Good Is a Good for Which Demand

question 419

Multiple Choice

An inferior good is a good for which demand

• A) decreases when income increases.
• B) increases when income increases.
• C) decreases when population increases.
• D) increases when population increases.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from the company's profits.

Stockholders' Equity

The residual interest or value that shareholders have in a company after all liabilities are subtracted from the assets.

Financial Statement

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and statements of cash flows.

Parenthetical Remark

An explanatory or clarifying comment inserted into the text of financial statements or reports, often provided within parentheses to supplement the main information.