if the quantity demand of good X decreases as the house hold income increases,what type of good is X?
Dear Student,
There is a negative relationship between the demand of an inferior good and income of the household buying it.
A rise in the income of household leads to fall in the demand of an inferior good.
Hence, good 'X' is an inferior good.
Regards
There is a negative relationship between the demand of an inferior good and income of the household buying it.
A rise in the income of household leads to fall in the demand of an inferior good.
Hence, good 'X' is an inferior good.
Regards