When income increases, the demand curve for an inferior good
A) shifts to the right.
B) shifts to the left.
C) moves up along the demand curve for the product.
D) remains constant.
B
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Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:
a. is buying too much pizza and not enough soda. b. should purchase more pizza and less soda. c. has maximized his or her total utility. d. needs to equate the marginal utilities for pizza and soda.
In 2011, the U.S. unionization rate was:
A. 5.5 percent, down by nearly one-half of the rate in the mid-1950s. B. 14.8 percent, up by about one-fourth of the rate in the mid-1950s. C. 11.8 percent, down by more than one-half of the rate in the mid-1950s. D. 21.2 percent, down by 4 percentage points from the mid-1950s.