If Hamburger Helper is an inferior good, a decrease in income causes
A) a decrease in demand for Hamburger Helper.
B) an increase in demand for Hamburger Helper.
C) a decrease in the quantity demanded of Hamburger Helper.
D) an increase in the quantity demanded of Hamburger Helper.
E) none of the above.

Question

Quizplus · Accepted Answer

If Hamburger Helper is an inferior good, a decrease in income causes an increase in demand for Hamburger Helper. This is because as income decreases, consumers tend to shift their consumption towards cheaper goods. Since Hamburger Helper is a cheaper option compared to other meals, its demand increases with decreasing income.

If Hamburger Helper Is an Inferior Good, a Decrease in Income