Multiple Choice
How do inferior goods differ from economic "bads"?
A) The demand for economic "bads" falls at higher levels of income whereas the demand for inferior goods falls at higher prices.
B) Economic "bads" are commodities for which demand falls as price falls whereas for inferior goods,quantity demanded falls as more is consumed.
C) Economic "bads" are commodities for which less is preferred to more under all conditions whereas for inferior goods,demand falls only when income increases.
D) For economic "bads" marginal utility is positive but gradually diminishes whereas for inferior goods,utility is negative from the first unit of consumption.
Correct Answer:

Verified
Correct Answer:
Verified
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