Question

The income of consumers has decreased. You know that canned meat is an inferior good. What will happen to the equilibrium price and quantity of canned meat

Answer 1

Answer:

Since canned food is an inferior good, as consumers' income decreases, the demand for canned food will increase.

Explanation:

When consumer income decreases, the aggregate demand curve shifts tot he left. This will decrease the consumption normal goods, especially luxury goods. But it will also increase the consumption of inferior goods, such as canned food, noodles, etc.