If a Good Is Inferior,then an Increase in Income Will

question 79

Multiple Choice

If a good is inferior,then an increase in income will result in a(n)

• A)increase in the demand for the good.
• B)decrease in the demand for the good.
• C)movement down and to the right along the demand curve for the good.
• D)movement up and to the left along the demand curve for the good.

Learn how the availability of substitutes affects price elasticity.

Recognize the impact of time on the price elasticity of demand for goods.

Distinguish between goods that are necessities and luxuries in terms of their price elasticity.

Understand how the proportion of the budget spent on an item affects its price elasticity of demand.

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