passwella.
Menu

JAMB Economics 1990 Question 14

Question 14

Theory of Demand

If an increase in income induces a reduction in the demand for beans, beans can be referred to as

  1. A.a normal good
  2. B.an inferior good
  3. C.a substitute good
  4. D.a giffen good
Show the answer and explanation

Answer: B (an inferior good)

Explanation

A good whose demand falls when income rises is an inferior good.