If Macaroni and Cheese Is an Inferior Good,what Would Happen

question 113

Multiple Choice

If macaroni and cheese is an inferior good,what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

• A)Both the equilibrium price and quantity would increase.
• B)Both the equilibrium price and quantity would decrease.
• C)The equilibrium price would increase,and the equilibrium quantity would decrease.
• D)The equilibrium price would decrease,and the equilibrium quantity would increase.

---

Definitions:

Total Utility

The total satisfaction received by consuming a certain amount of goods or services.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or benefit a person receives from consuming a particular quantity of goods or services.

Income Effect

The alteration in a person's or an economy's earnings and its effect on the amount of a product or service they seek to purchase.