If Rice Is an Inferior Good

question 42

Multiple Choice

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.

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