Demand
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
It is an inferior good.
(B)
It has many substitutes.
©
It is a complement good.
D.
It is a substitute good.
E
It is a normal good.
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It is an inferior good

Explanation:

Inferior goods are products whose demand increase as people income decrease. In other words, when consumers' income increase, the demand for inferior goods reduces. An inferior good is an economic term and has no relations with the quality of the product.

With reduced incomes, individuals are most likely to consumes fast foods. When their income increase, they can afford to dine in restaurants. For that reason, fast foods can be referred to as inferior goods. Non-branded product items are also inferior goods. When income reduces, the consumer may abandon expensive brands for cheaper non-branded products.