Sia
Question
Statistics
Posted 8 months ago
Economists have observed that when average incomes increase, purchases of fast food tends to decline.
Based on this information, what can we definitely say about fast food?
Choose 1 answer:
(A) Demand for fast food is upward sloping
(B) Fast food has no substitutes
(C) The price of a complement to fast food has risen
(D) Fast food is an inferior good
(E) Fast food is a normal good
Sign in to unlock the answer
Answer from Sia
Posted 8 months ago
Solution by Steps
step 1
To determine the nature of fast food based on the given information, we need to understand the relationship between income and demand
step 2
The observation that purchases of fast food decline when average incomes increase suggests that fast food is a type of good whose demand decreases as income increases
step 3
In economics, goods that see a decrease in demand as income increases are known as inferior goods
step 4
Therefore, based on the given information, we can conclude that fast food is an inferior good
Answer
D
Key Concept
Inferior Good
Explanation
An inferior good is a type of good for which demand decreases as the income of the consumer increases.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Unlock Smarter Learning with AskSia Super!
Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.
30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question