If consumers' income increases and the consumption for food decreases,then we can conclude:
A) food is a normal good.
B) food is an inferior good.
C) consumers are not rational.
D) this situation does not happen in developing countries.

Question

Quizplus · Accepted Answer

When the income of consumers increases, they tend to shift towards superior or luxury goods, therefore if consumption of food decreases its an indication that food is an inferior good.

If Consumers' Income Increases and the Consumption for Food Decreases,then