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2 years ago

If an increase in income induces a reduction in quantity demand for rice, rice can be referred to as

SAT

1 answer:

Luden [163]2 years ago

6 0

The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.

Explanation: An inferior good is a good whose demand reduces as income increases. It's demand has an inverse or negative relationship with income. Therefore as the income of the individual increases, the demand for an inferior good reduces. On a graph, the reduction in demand is depicted by an inward shift of the demand curve or a shift of the demand curve to the left to show a reduction in demand. Income is one of the factors that leads to a shift in the demand curve. The income elasticity would be negative

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1 year ago

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Answer:

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