If a decrease in income leads to in a decrease in the demand for mac and cheese, then mac and cheese is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.

Question

Quizplus · Accepted Answer

A normal good is a good for which the demand increases as income increases, and vice versa. If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is a normal good. This is because a decrease in income would lead consumers to buy cheaper alternatives to mac and cheese, reducing their demand for it.

If a Decrease in Income Leads to in a Decrease