Ask Question
4 November, 00:59

If product Y is an inferior good, a decrease in consumer incomes will rev:

A. make buyers want to buy less of product Y.

B. shift the demand curve for product Y to the right.

C. shift the demand curve for product Y to the left.

D. not affect the sales of product Y.

+3
Answers (1)
  1. 4 November, 02:45
    0
    Answer: Option (B) is correct.

    Explanation:

    Inferior good is a good whose demand is inversely related with the consumers income. This means that if there is an increase in the income of the consumer then as a result demand for normal good increases but demand for inferior goods decreases.

    On the other hand, if there is a decrease in the income of the consumer then as a result demand for normal good decreases but demand for inferior goods increases.

    Hence, decrease in consumer incomes will increase the demand of product Y and the demand curve for product Y to the right.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If product Y is an inferior good, a decrease in consumer incomes will rev: A. make buyers want to buy less of product Y. B. shift the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers