Question

Based on the observation that when average incomes increase, purchases of fast food tends to decline, what can we definitely say about fast food?

1) Fast food consumption increases when average incomes increase
2) Fast food consumption decreases when average incomes increase
3) Fast food consumption remains constant regardless of changes in average incomes
4) There is no relationship between average incomes and fast food consumption

Answer 1

Fast food consumption decreases as average incomes increase, suggesting that fast food is considered an inferior good with respect to income.

Step-by-step explanation:

Based on the observation that when average incomes increase, purchases of fast food tend to decline, we can definitely say that fast food consumption decreases when average incomes increase. This economic relationship indicates that fast food is likely considered an inferior good for the consumers in this scenario.

As incomes rise, people often shift towards healthier options or higher-quality food choices, which is why fast food purchases drop when there is more disposable income.

In this case, based on the observation that when average incomes increase, purchases of fast food tends to decline, we can conclude that fast food consumption decreases when average incomes increase. This is because when incomes increase, people tend to have more disposable income and can afford a wider range of food options.

As a result, they may choose to spend their money on healthier or higher-quality food choices, rather than fast food. It is important to note that this is a general trend and individual preferences and behaviors may vary.