If the demand for sardines increases as income decreases, sardines areA.substitute good.B.inferior good.C.normal good.D.complementary good.
Question
If the demand for sardines increases as income decreases, sardines areA.substitute good.B.inferior good.C.normal good.D.complementary good.
Solution
B. Inferior good.
Here's why:
An inferior good is a type of good that demand increases when consumer income decreases. This is because inferior goods are seen as lower quality or less desirable alternatives to more expensive goods. So, when people have less income, they are more likely to buy these less expensive, inferior goods. In this case, if the demand for sardines increases as income decreases, sardines would be considered an inferior good.
Similar Questions
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