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Julli [10]
4 years ago
6

Consider the following scenario:

Business
1 answer:
Nimfa-mama [501]4 years ago
8 0

Answer:

The price would definitely increase

Explanation:

Inferior good are good that of low quality which are consumed by low income earners and with an increase in the income of the consumer of an inferior good, the demand for the good reduces.

Note: the demand for inferior good reduces because of increase in consumers income, so this has nothing to do with the price.

On an economic sense, increase in cost of production, will definitely lead to an increase in the price of the goods produced.

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