suppose that spam is a meat product and an inferior good. which of the following

Question

suppose that spam is a meat product and an inferior good. which of the following would cause the quantity of spam demanded to decrease? everything else held constant

a.decrease in income of spam consumers

b.increase in worker productivity in spam factories

c. a decrease in the price of spam

d. a decrease in worker productivity in spam factories

e. an increase in the income of spam consumers

I have the correct answer, but I dont know WHY its the correct answer, so an explanation of why its not specific answers is also necessary. thanks!!

Explanation / Answer

e. an increase in the income of spam consumers

is the correct answer, based on the income elasticity of demand that tells when there is increase in income of the consumers they tend to buy more better quality and normal goods and reduce to buy the low quality goods or the inferior goods. So as the income of spam consumers increased they are likely to buy less inferior meat and buy the better quality product.

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