Business, 10.02.2020 21:59 culbertchristi6111

Which of the following describes an inferior good? A. When consumer income increases, the demand for tea increases. B. When consumer income decreases, the demand for public transit decreases. C. When consumer income increases, the demand for eggs decreases. D. When consumer income decreases, the demand for aspirin is unchanged.

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Answer from: frankcaroccio0203

C. When consumer income increases, the demand for eggs decreases.

Explanation:

Inferior goods is the type of good which demand does not increase even though the initial buyer experience an increase in purchasing power.

The reason for this is because that consumer choose to purchase another product that he/she couldn't afford before having an increase in income.

This 'other' product tend to be more expensive and higher in quality compared to the previous one. This is why the word 'inferior' is attached to the previous product.

From the example above, the reason why the demand for the eggs does not increase is most likely happen because the consumer choose to purchase higher quality of food. (such as a more expensive meat)

Answer from: twixer29

C. When consumer income increases, the demand for eggs decreases

Explanation:

An inferior good is an economic term used to describe products and services whose demand is inversely proportional to the people's income. As consumer's income increase, the demand for inferior goods decreases. Improvements in economic conditions in a country also make the demand for inferior goods to decrease.

Inferior goods are associated with consumers in the lower-income groups. Should their income increase, they will prefer more costly products. The term inferior goods is a purely economic term and have nothing to do with the quality aspects of a product.

Answer from: Quest

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.

Answer from: Quest

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Which of the following describes an inferior good? A. When consumer income increases, the demand for...

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