If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
Question 1 Report
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
Answer Details
If an increase in income induces a reduction in the demand for beans, beans can be referred to as an inferior good. This is because the increase in income would lead to a decrease in demand for the inferior good, as consumers switch to higher-priced alternatives. Inferior goods are those whose demand decreases as consumers' income increases. These goods are typically of lower quality or less desirable than other goods and are often associated with lower-income consumers. Examples of inferior goods include lower-quality food items, discount clothing, and used cars.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning