If a 10% increase in income causes the quantity demanded of macaroni and cheese to fall by 5%, then macaroni and cheese is a(n) _____.
A) normal
B) substitute
C) income-superior
D) inferior

Question

Quizplus · Accepted Answer

If a 10% increase in income causes the quantity demanded of a good to fall, it indicates that the good is an inferior good. People buy less of it as their income increases, preferring to purchase more desirable substitutes.

If a 10% Increase in Income Causes the Quantity Demanded