CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

A decrease in income should ______
A. shift demand for an inferior product inwards.
B. shift demand for an inferior product outwards.
C. shift supply for an inferior product outwards.
Explanation: Remember consumers will buy less of an inferior good when they have more income as they switch to more luxurious products.

User Contributed Comments 2

User Comment
thekobe outwards??
ChuongN Since it is an inferior good, people want more when they have less money, thus shifting the demand curve to the right because income decreased.
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