Final answer:
Among the given options, generic detergent is most likely to be considered an inferior good because demand for such cost-effective products typically decreases as consumer income rises, in preference to more premium options. Option 2 is correct answer.
Step-by-step explanation:
The question at hand involves understanding the concept of an inferior good, which is an economic term describing a good for which demand decreases as consumer income rises, in contrast with 'normal goods', for which demand increases as consumer income rises.
Among the options provided:
- French wines
- Generic detergent
- Theater tickets
- Steak
the one that would most likely be considered an
inferior good
is
generic detergent
. This is because when consumers have lower incomes, they tend to purchase more cost-effective and lower-priced goods. As their income rises, they often opt for premium brands or higher-quality products, leading to a decrease in the consumption of more economical options like generic detergent. On the contrary, items like French wines, theater tickets, and steak are typically considered normal goods because they are associated with higher quality and luxury, so demand for these goods generally increases with income.
The final answer is option 2, generic detergent, as it is most likely to be an inferior good.