If macaroni and cheese is an inferior good and an increase in consumer income occurs,then which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

If macaroni and cheese is an inferior good, then as consumer income increases, the demand for macaroni and cheese will decrease. Therefore, there will be a decrease in demand, which is represented by shifting the demand curve closer to the origin. So, option D is the correct answer. Option A is incorrect because an increase in income does not necessarily mean that consumers will spend more on an inferior good like macaroni and cheese. Option B is incorrect because an inferior good does not experience an increase in demand as income rises. Option C is also incorrect because the demand curve will shift closer to the origin, not farther away.

If Macaroni and Cheese Is an Inferior Good and an Increase