The correct options are as follows:
1. DECREASE / INDETERMINATE.
We are told in the question that cafeteria meals are inferior goods. An inferior good is a type of good whose demand decreases as the income of the consumer increases. That is, when the income of a consumer increases, such consumer will buy less of inferior goods and instead move on to buy goods that are more expensive. Thus, the demand for an inferior good will decrease as the income of the consumer increases. People usually buy inferior goods when they have low incomes, immediately their income increases, they move on to buy more expensive goods. Examples of inferior goods are: cheap cars, cheap frozen foods, intercity bus services, etc.
2. I, II AND III
Aggregate demand refers to the total demand for goods and services in a particular economy at a given point in time. The factors that affect aggregate demand include: consumers' expenditures, investment spending on capital goods, government spending and foreign goods. Shifts in these factors will either increase or decrease the aggregate demand. The following factors increase the aggregate demand: When the government reduces the income taxes paid by workers, increases in excess capacity and increase in quantity of foreign goods demanded.
3. AN INCREASE IN EXPORT.
An increase in the amount of goods exported by a country will lead to an increase in the amount of foreign incomes earn by the country, this in turn will increase the spending capacity of that country. Thus, increase in foreign incomes earn by an economy leads to increase in aggregate demand.
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