The table below shows the quantities of automobiles,margarine,and coffee purchased by Ted at different levels of income. Table 5.2

-Based on the information given in Table 5.2,margarine is:
A)an inferior good.
B)a necessity.
C)a normal good.
D)a complementary good.
E)a luxury good.

Question

The table below shows the quantities of automobiles,margarine,and coffee purchased by Ted at different levels of income. Table 5.2
 
-Based on the information given in Table 5.2,margarine is:
A)an inferior good. 
B)a necessity. 
C)a normal good. 
D)a complementary good. 
E)a luxury good.

Quizplus · Accepted Answer

As income increases, Ted purchases less margarine. This is a characteristic of inferior goods, which people buy less of as their income increases and can afford higher-quality substitutes.

The Table Below Shows the Quantities of Automobiles,margarine,and Coffee Purchased