Which of the Following Is TRUE of an Inferior Good

question 178

Multiple Choice

Which of the following is TRUE of an inferior good?

• A)When income increases, demand remains unchanged.
• B)When income increases, demand decreases.
• C)When income increases, demand increases.
• D)Income and demand are unrelated.

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Definitions:

Curvilinear Cost

A cost behavior pattern where costs increase with activity, but not at a constant rate, often depicted as a curved line on a graph.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.