A decrease in income will shift the demand curve for an inferior good to the right.

Question

Patricia Valenzuela · Accepted Answer

Final Answer : True, Explanation :  For an inferior good, as income decreases, consumers tend to buy more of the inferior good because it is a cheaper alternative to more expensive goods, leading to an increase in demand and a rightward shift of the demand curve.

A decrease in income will shift the demand curve for an inferior good to the right.

Definitions

Learning Objectives

Learning Objectives

Related questions