For an inferior good, when income increases, the demand curve shifts leftward.

A. If the price of a substitute rises, the demand curve shifts leftward.

B. If people expect the price of a good will rise in the future, the demand curve shifts leftward.

C. An increase in population shifts the demand curve leftward.

D. An increase in the cost of producing a good shifts the demand curve leftward.

Question

Business

Myah Donaldson

Yesterday, 00:57

For an inferior good, when income increases, the demand curve shifts leftward.

A. If the price of a substitute rises, the demand curve shifts leftward.

B. If people expect the price of a good will rise in the future, the demand curve shifts leftward.

C. An increase in population shifts the demand curve leftward.

D. An increase in the cost of producing a good shifts the demand curve leftward.

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Answers (1)

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Amaris Salinas · Answer 1

For an inferior good, when income increases, the demand curve shifts leftward.

Explanation:

For an inferior good, there is an inverse relationship between the demand for the inferior good and the income level of the consumer. If there is an increase in the income level of the consumer then as a result the demand for inferior goods decreases and this will shift the demand curve for inferior goods leftwards.

Hence, the first statement is true among all of the statements.