Assume that,as the price of cauliflower falls,the income effect causes consumers to buy fewer heads of cauliflower.We can conclude that cauliflower is:
A)an inferior good.
B)nasty tasting.
C)a normal good.
D)expensive.

Question

Quizplus · Accepted Answer

The income effect causing consumers to buy fewer heads of cauliflower as the price falls suggests that cauliflower is an inferior good. This means that as consumers' incomes increase, they tend to decrease their consumption of cauliflower and shift to other, relatively more expensive vegetables.

Assume That,as the Price of Cauliflower Falls,the Income Effect Causes