If rice is an inferior good,
A) the income elasticity of demand for rice will be positive.
B) an increase in income will cause the demand curve for rice to shift to the left.
C) an increase in income will cause consumers to buy more rice at the current market price.
D) a reduction in income would not affect the demand for rice, but it would increase the quantity demanded.

Question

Quizplus · Accepted Answer

For an inferior good, an increase in income leads to a decrease in demand, causing the demand curve to shift to the left.

If Rice Is an Inferior Good