Question

3. When income of consumer falls, the impact on price demand curve of an inferior good is
a. Rightward shift
b. Leftward shift
C. Upward movement along the curve
d. Downward movement along the curve​

Answer 1

Answer:

Demand for inferior goods has an opposite relationship with consumer's income. If there is a decline in the income of the consumer, the demand for an inferior good rise. Therefore, the consumer demand curve shifts towards the right.