An inferior good is one in which
a. the average consumer chooses not to consume.
b. the good is not equally valued by all consumers.
c. an increase in income increases consumption of the good.
d. an increase in income decreases consumption of the good.
Answer: d. an increase in income decreases consumption of the good.
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Refer to the diagrams that show identical marginal utility from income curves for Singer and Catalano. The marginal utility from income curves are drawn on the assumption that:
A. Singer buys more inferior goods than does Catalano.
B. Singer and Catalano have identical capacities to enjoy income.
C. Catalano has a greater capacity to enjoy income than does Singer.
D. Singer has a greater capacity to enjoy income than does Catalano.
Which of the following is the best example of the concept of "inferior"?
A. Hot dogs and hot dog buns B. Ramen noodles C. Coke and Pepsi D. SUVs