Question

An inferior good _____(A) has an upward sloping demand curve. (B) is made with faulty material​ and/or workmanship. (C) will never be purchased by consumers. (D) will experience decreases in demand as​ consumers' incomes increase.

Answer 1

(D) will experience decreases in demand as​ consumers' incomes increase.

Step-by-step explanation:

Inferior goods usually present low aggregate value and have more costly alternatives to them in the market. Inferior goods are preferred by people in low-income situations, therefore, if there is a significant increase in consumers' income, the demand for inferior goods decreases, as those people will start demanding better options.

The answer is alternative (D).