Question: Discuss which of the following statements is true or false and explain why:
(a) a good is inferior if the quantity demanded of it falls as the price falls;
(b) a good is inferior only if the quantity of it falls as the price falls; (Students may wish to read Chapter 3 before answering questions (c) to (e).)
(c) a good is inferior if the Hicks compensated demand curve cuts the normal (money income) demand curve from above (students might wish to read Chapter 3 before answering this part of the question);
(d) a good is inferior if the Slutsky compensated demand curve cuts the normal (money income) demand curve from below (students might wish to read Chapter 3 before answering this part of the question);
(e) a good is inferior if the Hicks compensated demand curve cuts the Slutsky compensated demand curve from above.