If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior good.

Question

Quizplus · Accepted Answer

An inferior good is a product that consumers demand less of when their income increases. In contrast, a normal good is a product that consumers demand more of when their income increases. Since the demand for fast-food rises as a result of lower income, it is considered an inferior good.

If the Demand for Fast-Food Rises as a Result of Lower