| When income of the consumer falls the impact on price-demand curve of an inferior good is: (choose the correct alternative) |
| (a) Shifts to the right. |
| (b) Shifts to the left. |
| (c) There is upward movement along the curve. |
| (d) There is downward movement along the curve. |
Answer:
Demand for inferior goods shares a negative relationship with consumer?s income. So, when the income of the consumer falls, the demand for an inferior good increases leading to the rightward shift of the demand curve. Hence, the correct answer is option (a).
You need to login to perform this action.
You will be redirected in
3 sec
