Question

Goods which exhibit negative income-demand relationship are called ________.

• A. Giffen goods
• B. inferior goods
• C. normal goods
• D. luxury goods

Answer 1

The correct option is B inferior goods

Inferior goods refer to those goods which possess an inverse relation between income of a consumer and demand of that particular good,that is, when there is a rise in income of the consumer,the demand of that particular good falls.For example,coarse grains..