If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
Correct answer: C. an inferior good
- A. a normal good
- B. none of these answers
- C. an inferior good
- D. a substitute good
Explanation
A good whose demand falls when consumer income rises is an inferior good. Normal goods show the opposite income-demand relationship.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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