?

AP® Macroeconomics

Free Version

Upgrade subject to access all content

Difficult

Income Change Effect on Inferior versus Normal Goods & Services

APMACR-QJKGDZ

Ceteris paribus, if the average income of Americans increases, how will demand for an inferior good be affected?

A

Demand for an inferior good or service will increase and a rightward shift of the demand curve will occur.

B

Supply for an inferior good or service will increase and a rightward shift of the demand curve will occur.

C

Supply of an inferior good or service will increase and a leftward shift of the demand curve will occur.

D

Demand for an inferior good or service will decrease and a leftward shift of the demand curve for the inferior good will occur.

E

Both supply and demand for inferior goods will increase and both curves will shift right.