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)the quantity of fast food supplied decreases as income increases.

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as income increases. Fast food is often considered an inferior good because as people's incomes rise, they tend to consume more expensive, higher-quality options rather than relying on cheap and convenient fast food.

Fast Food Is Believed to Be an Inferior Good