Each of the following is an inferior good except

A) rice.
B) potatoes.
C) beans.
D) Filet Mignon steak.

Question

Each of the following is an inferior good exceptA) rice.B) potatoes.C) beans.D) Filet Mignon steak.

Latifah Ashari · Accepted Answer

Final Answer : D, Explanation :  An inferior good is a good for which demand decreases as income increases. Rice, potatoes, and beans are typically considered inferior goods because as people's income increases, they are more likely to switch to higher-quality, more expensive types of food. Filet Mignon steak, however, is a luxury good for which demand increases as income increases.

Each of the following is an inferior good except

A) rice.
B) potatoes.
C) beans.
D) Filet Mignon steak.

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Learning Objectives

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