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Answer : 2. "income increases"
The demand for an inferior good falls when
5Q:
The demand for an inferior good falls when
- 1price increasesfalse
- 2income increasestrue
- 3the price decreasesfalse
- 4the price decreasesfalse
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Answer : 2. "income increases"
Explanation :
In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes.