The demand for an inferior good decreases with ________ in the consumer's income.a)increaseb)decreasec)constantd)doubleCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Inferior goods are those goods which are consumed by group of lower income of people,for eg.jowar,bajra ,etc.As their income increases they start buying normal goods.So, there is inverse relation between the income and inferior goods.

Answer

Explanation:
An inferior good is a type of good whose demand decreases when the income of the consumer increases. This is because consumers consider an inferior good as a low-quality product and prefer to buy a higher quality product as their income increases. Therefore, the demand for an inferior good decreases when the consumer's income increases.

For example, consider a consumer who buys instant noodles as a staple food because of their low cost. As the consumer's income increases, they may start to prefer healthier and more expensive food options. In this case, the demand for instant noodles, which is an inferior good, decreases as the consumer's income increases.

Summary:
The demand for an inferior good decreases with an increase in the consumer's income as they prefer to buy higher quality products.

Answer

Option A

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