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Inferior good

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Inferior good

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • June 27, 2016 at 3:43 pm #324242
    rameeza
    Participant
    • Topics: 46
    • Replies: 30
    • ☆☆

    Sir can you explain this answer
    For a normal, but inferior good, the demand curve slopes ______ to the right.
    a. downwards
    b. upwards
    c. horizontally
    Answer was A
    but demand curve for inferior goods slopes upward right?

    June 28, 2016 at 1:27 pm #324312
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10589
    • ☆☆☆☆☆

    As income rises demand for the inferior good falls because consumers switch to a better one.

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