For an inferior good, a decreased in real income will lead to?

a

a lower equilibrium price

b

a change in quantity demanded

c

an outward shift of the demand curve

d

an inward shift of the demand curve

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c

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Discussions (4)

Deepthinker581
4 years ago

An outward shift in demand will occur if income increases, in the case of a normal good; however, for an inferior good, the demand curve will shift inward noting that the consumer only purchases the good as a result of an income constraint on the purchase of a preferred good.

I think it's D

mickychen
13 years ago

Inferior goods are goods that their demand decreases as the income rises

NOTABENE2021
4 years ago

Explanation: In economics, an inferior good is a good whose demand decreases when consumer income rises or demand increases when consumer income decreases ,unlike normal goods, for which the opposite is observed. One of the reason why the demand curve shifts to the right is a decrease in income for inferior good since income and inferior good has inverse relationship.

Uche_06
1 year ago

What is inward and outward shift in demand curve?

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