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WAEC Economics 2006 Question 14

Question 14

Theory of Demand

What are inferior goods? These are goods

  1. A.that are generally in short supply
  2. B.that are no longer in demand
  3. C.whose demand falls as income increases
  4. D.whose price falls as demand increases.
Show the answer and explanation

Answer: C (whose demand falls as income increases)

Explanation

An inferior good is one people buy less of when their income rises, switching to better goods.