NABTEB Economics 2025 Objective — Question 37

Question 37 of 60 from the National Business and Technical Examinations Board (NABTEB) Economics 2025 Objective paper, with the correct answer and a full explanation.

When the demand for a particular commodity falls as a result of an increase in income of a consumer, the products involved are ___ goods.

A. inferiorCorrect
B. intermediate
C. luxury

Explanation

Inferior goods have negative income elasticity - demand decreases as income increases (e.g., cheap substitutes).

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