Suppose you manage a grocery store.If peanut butter is an inferior good,what do you suppose would happen to the price and quantity sold of peanut butter as incomes fell during a recession?

Question

Quizplus · Accepted Answer

During a recession, as incomes fall, the demand for inferior goods like peanut butter typically increases because consumers opt for cheaper alternatives. This increased demand can lead to both an increase in price and quantity sold.

Suppose You Manage a Grocery Store