Question

What is income consumption curve. How does it look like for inferior goods​

Answer 1

Answer:

income consumption curve (ICC) slopes backward i.e., bends toward the Y-axis. This shows good X to be an inferior good, since beyond point Q2, income effect is negative for good X and as a result its quantity demanded falls as income increases

Answer 2

Answer:

income consumption curve (ICC) slopes backward i.e., bends toward the Y-axis. This shows good X to be an inferior good, since beyond point Q2, income effect is negative for good X and as a result its quantity demanded falls as income increases.