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Question
Macroeconomics
Posted 6 months ago
As a result of an increase in consumer incomes, the demand for Meeps has decreased.

Based on this information, what can we definitely say about what type of good a Meep is?

Choose 1 answer:
A) It is a complement good.
(B) It is an inferior good.
(c) It is a substitute good.
D) It has many substitutes.
(E) It is a normal good.
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Answer from Sia
Posted 6 months ago
B
Key Concept
Inferior Good
Explanation
An inferior good is a type of good for which demand decreases as consumer income rises, which is opposite to what happens with normal goods. Since the demand for Meeps has decreased with an increase in consumer income, Meeps are classified as an inferior good.

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