Economists have observed that when average incomes increase, purchases of fast food tends to decline.

Based on this information, what can we definitely say about fast food?
Choose 1 answer:
Demand for fast food is upward sloping
There is always an inverse relationship between price and quantity demanded, meaning the demand curve always slopes downward. Also, in this case buyers are responding to a change in income, not price.
Fast food has no substitutes
We cannot say whether fast food and other options are complements or substitutes unless we know how prices are changing for those other goods.
The price of a complement to fast food has risen
It's true that an increase in the price of a complementary good causes demand for the good in question to fall, but this statement is saying that buyers are responding to a change in income.
Fast food is an inferior good
If rising incomes lead consumers to demand less of a good, then that good is considered an inferior good. With higher incomes, people decide to buy better goods.
Fast food is a normal good
Normal goods experience an increase in demand when incomes rise.

Question

Economists have observed that when average incomes increase, purchases of fast food tends to decline.

Based on this information, what can we definitely say about fast food?
Choose 1 answer:
Demand for fast food is upward sloping
There is always an inverse relationship between price and quantity demanded, meaning the demand curve always slopes downward. Also, in this case buyers are responding to a change in income, not price.
Fast food has no substitutes
We cannot say whether fast food and other options are complements or substitutes unless we know how prices are changing for those other goods.
The price of a complement to fast food has risen
It's true that an increase in the price of a complementary good causes demand for the good in question to fall, but this statement is saying that buyers are responding to a change in income.
Fast food is an inferior good
If rising incomes lead consumers to demand less of a good, then that good is considered an inferior good. With higher incomes, people decide to buy better goods.
Fast food is a normal good
Normal goods experience an increase in demand when incomes rise.

Accepted Answer

∻Solution∻ ‖ a ⋮ Inferior Good Definition: An inferior good is a type of good for which demand decreases as the income of individuals increases. This is in contrast to a normal good, for which demand increases as the income of individuals increases. ‖ ‖ b ⋮ Observation Analysis: The information provided indicates that as average incomes increase, purchases of fast food decline. This behavior is characteristic of an inferior good, as people tend to substitute it with what they perceive as better alternatives when they have more income. ‖ ∻Answer∻ ⚹ Fast food is an inferior good ⚹ ∻Key Concept∻ ⚹ Inferior Good ⚹ ∻Explanation∻ ⚹ Fast food is classified as an inferior good because the demand for it decreases as consumer incomes increase, leading consumers to choose other alternatives. ⚹◊What is the relationship between income and the demand for fast food according to the observation by economists?⍭ Generate me a similar question◊

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