PRC-3 · Chapter 10 · Question 3 of 70
If household incomes rise significantly across a nation, and as a result, the demand for generic, low-quality canned goods sharply decreases, what type of good are these canned goods?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Inferior goods
Explanation
An inferior good is one whose demand decreases when consumer income rises, as consumers switch to higher-quality substitutes.
More Demand, Supply and Market Equilibrium MCQs
- Q5Due to a severe frost, a country's entire orange harvest is severely damaged. How will this event affect the supply curve for oranges?
- Q6A factory producing shoes negotiates a new contract that halves the wages paid to its workers. Assuming all other factors remain constant…
- Q7In a free market, if the current market price of wheat is set artificially higher than the equilibrium price, what market condition will…
- Q8The government imposes a legal 'price ceiling' on apartment rentals to keep them affordable for low-income families, setting the maximum…
- Q9If there is a simultaneous outward shift of the demand curve (increase in demand) and an inward shift of the supply curve (decrease in…