Refer to Figure 4.1.4 above. Which of the following goods is an inferior good?

A) Steak
B) Hamburger
C) Clothing
D) Food

Question

Refer to Figure 4.1.4 above. Which of the following goods is an inferior good?A)  SteakB)  HamburgerC)  ClothingD)  Food

Jayda Johansen · Accepted Answer

Final Answer : B, Explanation :  As income increases, demand for inferior goods decreases. Hamburger is likely to be an inferior good as it is less expensive than steak and clothing, which are considered normal goods. The graph shows a negative income elasticity of demand for hamburger, further indicating that it is an inferior good.

Refer to Figure 4.1.4 above. Which of the following goods is an inferior good?

A) Steak
B) Hamburger
C) Clothing
D) Food

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Learning Objectives

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