If macaroni and cheese is an inferior good, an increase in income will
A) not affect the demand for macaroni and cheese.
B) decrease the demand for macaroni and cheese.
C) increase the demand for macaroni and cheese.
D) create no income effect.
B
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An increase in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in the equilibrium interest rate. B) increase in equilibrium real GDP and a decrease in the equilibrium interest rate. C) decrease in equilibrium real GDP and an increase in the equilibrium interest rate. D) decrease in equilibrium real GDP and a decrease in the equilibrium interest rate.
If there is an increase in market demand in a perfectly competitive market, then in the short run prices will
a. rise. b. remain unchanged at the minimum of average total cost. c. fall. d. remain unchanged at the minimum of marginal cost.