Questions: Refer to the above table. Which product would be an inferior good? Multiple Choice Product X Product Y Product W Both products W and Y

The answer is the third one: Product W.

Explanation for each option:

• Product $X$: The percentage change in income is +6, and the change in quantity demanded is +3. This indicates that as income increases, the demand for Product $X$ also increases, which is characteristic of a normal good, not an inferior good.

• Product $Y$: The percentage change in income is -1, and the change in quantity demanded is +1. This suggests that as income decreases, the demand for Product $Y$ increases, which is characteristic of an inferior good. However, we need to compare it with other options.

• Product W: The percentage change in income is -1, and the change in quantity demanded is -1. This indicates that as income decreases, the demand for Product W also decreases, which is not characteristic of an inferior good. This is more typical of a normal good.

• Both products $W$ and $Y$: As explained, Product W does not fit the criteria for an inferior good, while Product Y does. Therefore, this option is incorrect.

In summary, Product Y is the one that fits the definition of an inferior good, as its demand increases when income decreases. However, since the question asks for a single product and Product W does not fit the criteria for an inferior good, the correct answer is Product Y.