When the income of buyers of good X rises the equilibrium price of good X will (assume X is an inferior good): a) may rise or fall. b) falls c) rises d) stay the same
When the income of buyers of good X rises the equilibrium price of good X will (assume X is an inferior good): a) may rise or fall. b) falls c) rises d) stay the same
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 15SQ
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When the income of buyers of good X rises the
a) may rise or fall.
b) falls
c) rises
d) stay the same
Expert Solution
Step 1
A good whose demand fall with the increase in income of the consumer is known as an inferior good.
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