The table below shows the quantities of automobiles, margarine, and coffee purchased by Ted at different levels of income. Table 19.2
Based on the information given in Table 19.2, margarine is:
A)an inferior good.
B)a necessity.
C)a normal good.
D)a complementary good.
E)a luxury good.

Question

The table below shows the quantities of automobiles, margarine, and coffee purchased by Ted at different levels of income. Table 19.2
 Based on the information given in Table 19.2, margarine is:
A)an inferior good. 
B)a necessity. 
C)a normal good. 
D)a complementary good. 
E)a luxury good.

Quizplus · Accepted Answer

From the table, we can see that as Ted's income increases, the quantity of margarine he purchases decreases. This indicates that margarine is an inferior good, meaning that as income increases, demand for the good decreases.

The Table Below Shows the Quantities of Automobiles, Margarine, and Coffee