Question

If the demand for a good falls when income falls, then the good is called a. an inferior good. b. a normal good.

Answer 1

Answer:

An inferior good is one whose demand drops when people's incomes rise. When incomes are low or the economy contracts, inferior goods become a more affordable substitute for a more expensive good. Inferior goods are the opposite of normal goods, whose demand increases even when incomes increase.

Explanation:

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Answer 2

that is a normal good..since normal goods have a high demand when income increases and have a low demand when income decreases

while the inferior goods have a high demand when income is low and and less demanded when income increases