If a decrease in income increases the demand for a good, then the good is

Question

BlackTom AI · Accepted Answer

The question asks about how a change in income affects demand for a good. When income decreases and the quantity demanded of a good increases, this characterizes an inferior good, because consumers buy more of it as their purchasing power falls and they substitute away from more expensive alternatives.
If the options had included a normal good, the typical relationship would be the opposite: demand would rise with income and fall when income drops, which contradicts the observed pattern in this question.
If the options had included a luxury or superior good, those typically see a sharper increase in demand with higher income, not an increase in demand when income falls, so they would be inconsistent with the scenario described here.
If the options had included a Giffen good, the defining feature is a special case where an income effect outweighs the substitution effect for an inferior good, leading to an upward-sloping demand curve in the case of a price increase; however, the key relation described in the question is about income decreasing, which aligns with the behavior of an inferior good in general, whereas a Giffen good is a more specific and less common scenario.
Because the provided answer indicates 'c. an inferior good,' this aligns with the standard economic principle that demand for inferior goods rises when income falls, while demand for normal goods falls in that situation. Keep in mind that the lack of visible answer options here means we infer the intended choice from the official answer field itself, and the reasoning above supports that interpretation.

If a decrease in income increases the demand for a good, then the good is

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