If mac and cheese are an inferior good, then the decrease in income results in?

September 7th, 2008 · 2 Comments

1) A decrease in the demand for mac and cheese
2) A decrease in the supply of mac and cheese
3) An increase in the supply of mac and cheese
4) An increase in the demand for mac and cheese
5) A and D are correct

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2 responses so far ↓

1 odie b // Sep 7, 2008

it will cause an increase in demand for mac and cheesse
2 Jurij-EU // Sep 7, 2008

1) A decrease in the demand for mac and cheese

Inferior goods have negative income elasticity of demand, thus along with higher income demand for inferior goods falls.

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If mac and cheese are an inferior good, then the decrease in income results in?

September 7th, 2008 · 2 Comments

2 responses so far ↓

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