What is the correct answer?


When income of the consumer increases then demand curve of an inferior good:

A. Shifts rightward

B. Shifts leftward

C. Does not shift

D. None of the above

Correct Answer :

B. Shifts leftward

Inferior good is a good that decreases in demand when consumer income raises, i.e. cheaper cars. An increase in income causes a decrease in demand for inferior good so demand curve shifts leftwards and vice versa.)

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