If Macaroni and Cheese Is an Inferior Good, Then a Decrease

question 77

Multiple Choice

If macaroni and cheese is an inferior good, then a decrease in income will result in

• A) an increase in the demand for macaroni and cheese.
• B) a decrease in the demand for macaroni and cheese.
• C) an increase in the supply of macaroni and cheese.
• D) a decrease in the supply of macaroni and cheese.

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Definitions:

Excess Cash

Funds that exceed the necessary operating, investing, and financing requirements of a company, potentially available for dividends or investments.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.