When income decreases, the demand for __________ tends to increase, illustrating how consumer preferences shift in response to economic conditions.

When income decreases, the demand for inferior goods tends to increase. Inferior goods are those products that people tend to buy more of when they have less money because they are usually cheaper alternatives to more expensive options. For example, if someone loses their job and their income drops, they might buy more instant noodles instead of fresh meals, as instant noodles are less expensive. This shift in buying behavior shows how consumers adapt to their financial situation by choosing items that fit their budget better. Thus, when times are tough, people often turn to inferior goods to help manage their spending.