The table below shows the quantities of automobiles, margarine, and coffee purchased by Ted at different levels of income.Table 6.2

-Based on the information given in Table 6.2, 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 6.2
 
-Based on the information given in Table 6.2, 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, the quantity of margarine purchased decreases. This is characteristic of an inferior good, which is a good for which demand decreases as income increases.

The Table Below Shows the Quantities of Automobiles, Margarine, and Coffee