If we wanted to prove that macaroni is an inferior good, we would test the __________ of macaroni and get a __________.
A)cross-price elasticity; negative number
B)income elasticity; number less than 1
C)income elasticity; positive number
D)price elasticity of demand; number greater than negative 1
E)income elasticity; negative number

Question

Quizplus · Accepted Answer

An inferior good is one where demand decreases as consumer income rises. This is indicated by a negative income elasticity of demand.

If We Wanted to Prove That Macaroni Is an Inferior