If a decrease in income increases the demand for a good, then the good is

Question

a. a complementary good.
b. a normal good.
c. an inferior good.
d. a substitute good.

Answer 1

If a decrease in income increases the demand for a good, then the good is:

c. an inferior good.

Inferior goods are those for which demand increases when consumer incomes fall, as people tend to buy more of these goods instead of more expensive alternatives.