Examlex

Solved

An Inferior Good Is a Good for Which the Quantity

question 133

True/False

An inferior good is a good for which the quantity demanded decreases as the price increases, holding everything else constant.


Definitions:

Profit-maximizing

The process of adjusting output and production levels to achieve the highest possible profits.

Output Units

A measure of production that represents the total quantity of goods and services produced over a specific period of time.

ATC

Average Total Cost, a firm's total cost divided by its total output.

Demand

The quantity of a specific good or service that consumers are willing and able to purchase at different price levels, at a given time.

Related Questions