Nick Considers Macaroni and Cheese to Be an Inferior Good

question 184

Multiple Choice

Nick considers macaroni and cheese to be an inferior good. As a result of macaroni and cheese being an inferior good, the

• A) substitution effect must be larger in magnitude than the income effect so that less is purchased as the price falls.
• B) substitution effect must be smaller in magnitude than the income effect so that less is purchased as the price falls.
• C) income effect is positive, so that more is purchased as income increases.
• D) income effect is negative, so that less is purchased as income increases.

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Definitions:

Geographical Inequalities

Variations in wealth, resources, and quality of life that occur across different geographic locations.

Canadians Using Marijuana

A reference to the consumption of cannabis by individuals within Canada, which has legal and cultural implications.

Social Norms

Shared and accepted standards and social expectations.

Incarcerated

Being confined in a prison or jail, deprived of personal freedom.