Question

An inferior good is:

a. one whose demand curve will shift rightward as incomes rise.
b. one whose price and quantity demanded vary directly.
c. one which has not been approved by the federal food and drug administration.
d. not accurately defined by any of these statements.

Answer 1

An inferior good is a goods whose demand curve will shift rightward as incomes rise. It is not like the normal goods, for which the opposite is observed. Normal goods are those for which consumers' demand increases when their income increases. (a)