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.

---

Definitions:

SKUs

Stock Keeping Units, which are unique identifiers for each distinct product and service available for sale.

Single Criterion

In decision-making, this term refers to evaluating options based on one key factor or condition.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, detailing assets, liabilities, and shareholders' equity.

Variable Expense

A cost that changes in proportion to the level of activity or volume of output in a business.