Assume that spaghetti is an inferior good for most people. As their incomes increase, all other things held constant, the:
A) demand for spaghetti will decrease shifting the demand curve to the left.
B) demand for spaghetti will decrease shifting the demand curve to the right.
C) demand for spaghetti will increase shifting the demand curve to the left.
D) demand for spaghetti will increase shifting the demand curve to the right.

Question

Quizplus · Accepted Answer

As income increases, people tend to switch from inferior goods like spaghetti to superior goods. Therefore, the demand for spaghetti is likely to decrease, causing a leftward shift of the demand curve.

Assume That Spaghetti Is an Inferior Good for Most People