Question

Which of the following is most likely to be an inferior good?

1) Rice
2) Luxury cars
3) Designer clothing
4) Fine dining restaurants

Answer 1

Rice is most likely to be an inferior good, as people substitute it with more expensive food choices as their income increases.

Step-by-step explanation:

An inferior good is a product that experiences a decrease in demand as income increases. Out of the given options, the most likely to be an inferior good is rice. As people's income rises, they tend to substitute rice with more expensive food choices.