Inferior Good - A good that increases demand when consumer income decrease.Question 4AnswerTrueFalse

The statement is accurate. An inferior good is defined as a type of good whose demand increases when consumer incomes fall, and conversely, its demand decreases when consumer incomes rise. This relationship reflects consumer behavior in response to income changes, typically driven by their necessity to manage a budget effectively.

True or False?

In this case, the correct answer is True.

Inferior goods contrast with normal goods, which experience an increase in demand as consumer income rises. Examples of inferior goods often include items like instant noodles or certain generic brands. When people have less income, they may choose these alternatives over more expensive options, demonstrating the core definition of an inferior good.