Economy, asked by varshasureshms28, 7 months ago

for an inferior good an increase in income causes a(an)​

Answers

Answered by sravankumarssk99
1

Answer:

Decrease in demand

Explanation:

⇒ Income (Y) - increases ⇔ demand for inferior good decreases

                                               (as they will demand normal and luxury goods)

⇒ Income (Y) - decreases ⇔ demand for inferior good increases

                                           (as they can't demand normal and luxury goods)

so, there is an inverse/negative relation between income and inferior goods

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