Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

Which statement correctly describes the downward-sloping demand curve for an inferior good?

  • ANegative income effect and substitution effect move in opposite directions, leading to a steeper demand curve.
  • BNegative income effect and substitution effect move in the same direction, leading to a flatter demand curve.
  • CPositive income effect and substitution effect move in opposite directions, leading to a steeper demand curve.
  • DPositive income effect and substitution effect move in the same direction, leading to a flatter demand curve.

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