Question

If X is an inferior good, a reduction in money income will shift the:

Answers:
A.
supply curve for X to the left.

B.
supply curve for X to the right.

C.
demand curve for X to the left.

D.
demand curve for X to the right.

Answer 1

A reduction in money income will shift the demand curve for an inferior good to the left.

Step-by-step explanation:

A reduction in money income will shift the demand curve for an inferior good to the left. This is because an inferior good is characterized by a negative income elasticity of demand, meaning that as income decreases, the demand for the good increases. Therefore, when income reduces, the demand curve for an inferior good will shift to the left.