If macaroni and cheese is an inferior good, falling incomes will tend to:
A) put upward pressure on its price and quantity.
B) put downward pressure on its price and quantity.
C) raise its price but lower its quantity.
D) lower its price but raise its quantity.

Question

Quizplus · Accepted Answer

When incomes fall, demand for inferior goods like macaroni and cheese increases, leading to upward pressure on both price and quantity.

If Macaroni and Cheese Is an Inferior Good, Falling Incomes