Asked by Parker Elliott on Jul 05, 2024
Verified
The income elasticity of demand for an inferior good,such as a macaroni and cheese dinner,is negative.
Income Elasticity
A metric assessing the responsiveness of a product's demand to fluctuations in consumer incomes.
Inferior Good
A type of good for which demand decreases as the income of consumers increases, in contrast to normal goods, where demand increases with rising income.
Macaroni and Cheese
Macaroni and cheese is a popular dish made primarily of cooked macaroni pasta and a cheese sauce, often served as a comfort food.
- Learn about the theories of income elasticity of demand and cross-price elasticity of demand, and their significance to the categorization of goods as normal, inferior, substitutes, or complements.
Verified Answer
CS
Candice SpencerJul 12, 2024
Final Answer :
True
Explanation :
The income elasticity of demand for an inferior good such as a macaroni and cheese dinner is negative. This means that as people's income increases, they will less likely buy the cheaper and low-quality product and switch to better-quality products.
Learning Objectives
- Learn about the theories of income elasticity of demand and cross-price elasticity of demand, and their significance to the categorization of goods as normal, inferior, substitutes, or complements.