Option 1: Fall in equilibrium price and quantity -> Inferior goods have an inverse relationship with income. When buyers' income increases, they switch to superior alternatives, causing demand for inferior goods to decrease. A leftward shift in the demand curve leads to both lower equilibrium price and lower equilibrium quantity. Examples include low-quality goods that people stop buying as they become wealthier. -> correct
Increase in the income of buyers (in case of inferior goods) will cause
CUET UG 2025 — Economics Micro
2025mcqmedium
Increase in the income of buyers (in case of inferior goods) will cause _________
Official previous-year question
Held on 3 Jun 2025 · Verified 13 Jul 2026.
Options
- A
Fall in equilibrium price and quantity.
- B
Rise in equilibrium price and quantity.
- C
Fall in equilibrium price and quantity to rise.
- D
Rise in equilibrium price and quantity to fall.
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