If macaroni and cheese is an inferior good,then a decrease in income results in
A) an increase in the demand for macaroni and cheese.
B) a decrease in the demand for macaroni and cheese.
C) an increase in the supply of macaroni and cheese.
D) a decrease in the supply of macaroni and cheese.
E) Both answers A and D are correct.

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand increases when consumer income decreases. Therefore, if income decreases, people are more likely to buy more macaroni and cheese, indicating an increase in demand for it.

If Macaroni and Cheese Is an Inferior Good,then a Decrease