Question

Afn is a good for which demand increases when income increases, and demand decreases when income decreases

a.substitute good
b. consumer good
c.normal good
d.inferior good

Answer 1

An inferior good is a good that decreases in demand as income increases, and increases in demand as income decreases.

Step-by-step explanation:

A good that follows the described behavior is called an inferior good. In the case of inferior goods, the demand decreases when income increases, and the demand increases when income decreases. This means that consumers tend to purchase less of the good when their income rises and more of the good when their income falls.

For example, consider generic brands of certain products. When a consumer's income increases, they may choose to purchase name-brand versions of those products instead. However, when their income decreases, they may switch back to the generic brands.