Wednesday, May 13, 2009

Kraft Mac & Cheese is an Inferior Good

Here is a short article showing that Kraft's sales of Macaroni & Cheese has increased 10% during the first quarter of this year. This is one of the examples I use in class of an inferior good. So, as incomes decrease the quantity demanded of Kraft Mac & Cheese goes up, which is how economist's define an inferior good.

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