What Is an Inferior Good

question 83

Multiple Choice

What is an inferior good?

• A) a product of low quality that we do not want to purchase
• B) a product for which demand increases when income increases, and demand decreases when income decreases
• C) a product for which demand increases when income decreases, and demand decreases when income increases
• D) a product that is complementary
• E) a product that is a substitute for another, better good

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Definitions:

Semiannually

Happening semi-annually, generally every six months.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment up to, but not including, the present date.

Semiannually

Occurring twice a year, typically every six months.

Accrued Interest

Interest that has been earned but not yet paid or received.