For an inferior good a decreased in real income... - JAMB Economics 2003 Question

Here's the breakdown:

• Inferior Good: An inferior good is a good for which demand decreases as consumer income increases, and vice-versa.
• Decreased Real Income: If real income decreases, consumers have less money to spend.
• Impact on Demand: For an inferior good, a decrease in income leads to an increase in demand. This is because consumers, with less income, will switch to cheaper alternatives (inferior goods). An increase in demand is represented graphically by an outward shift of the demand curve.
• Options Analysis:
  • A lower equilibrium price: is not a direct result of change in income.
  • a change in quantity demanded: this would be a movement along the demand curve, not a shift of