Peanut butter is an inferior good.If there is an increase in income,total surplus in the peanut butter market:
A)will increase.
B)will decrease.
C)will not change.
D)may change,but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

Peanut butter is an inferior good, which means that as income increases, the demand for peanut butter decreases. Therefore, if there is an increase in income, the total surplus in the peanut butter market will decrease as well because consumers will be buying less peanut butter.

Peanut Butter Is an Inferior Good