Fast food is believed to be an inferior good. This means that:
A) the quantity of fast food consumed decreases as income increases.
B) the income elasticity of demand for fast food is positive.
C) the quantity of fast food consumed will always be high
D) fast food is really not quality food

Question

Quizplus · Accepted Answer

An inferior good is one for which the quantity demanded decreases as income increases. Fast food is usually cheaper than healthier meal options and is often chosen by individuals with lower incomes. As their income increases, they may choose to purchase more expensive and healthier meal options, leading to a decrease in the quantity of fast food consumed.

Fast Food Is Believed to Be an Inferior Good