A good is termed as an inferior good if_____. • A good is termed as an
Right Answer is: B
• A good is termed as an inferior good if its consumption reduces with a rise in Income.
• Inferior goods have a negative income elasticity of demanD.
• For example when the prices of Coarse grains are reduces the
demand of superior grains like Rice and Wheat increase.
• Giffen goods are inferior products.