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Which kind of good might not be bought when price rise?

complement

substitute

luxury

inferior good

User Ali Sufyan
by
5.3k points

2 Answers

5 votes

Answer:

luxury

Step-by-step explanation:

In case of inferior goods the income effect will work in opposite direction to the substitution effect. When price of an inferior good falls, its negative income effect will tend to reduce the quantity purchased, while the substitution effect will tend to increase the quantity purchased.

User Michael Sivolobov
by
5.4k points
6 votes

That would be luxury.

User ShdNx
by
5.9k points