Question

If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is
a. a complementary good.
b. a substitute good.
c. a normal good.
d. an inferior good.
e. none of the above.

Answer 1

The correct answer is **d. an inferior good**.

Inferior goods are those for which demand decreases when consumer incomes rise, as people tend to purchase higher-quality alternatives when they can afford them. In this case, a rise in consumer incomes leading to a decrease in the demand for camping equipment indicates that camping equipment is likely considered an inferior good.