An inferior good is one for which an increase in income causes a(n)

Related MCQs

• If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is
• The law of demand states that an increase in the price of a good:
• The law of supply states that an increase in the price of a good:
• If the income elasticity of demand for a good is negative, it must be:
• A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:
• According to ----------- when income increases by a small increment, it leads to increasing marginal utility of income
• Which of the following would cause a demand curve for a good to be price inelastic?
• If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is:
• A firm may decide to increase its scale so that it has excess production capacity because, by doing so, it is able to
• If you know that the marginal utility per rupees spent on product Alpha is less than the marginal utility per rupees spent on product Beta, consumers who spend all their income on these two products can: