“Bigger, better” Burgers, Not Downsized

Answer the following questions to check your understanding of the story.

How do economists classify the two types of burgers described in the news clip?

“Bigger, better” burgers are _________ goods, and smaller burgers are _________ goods.

a) normal; inferior

b) inferior; inferior

c) inferior; normal

d) normal; normal

Why do the low prices of smaller burgers no longer attract customers?

Smaller burgers no longer attract customers because__________.

a) as Americans “climb the ladder”, demand for smaller burgers decrease

b) in the market for burgers, factors like taste and income drive sales, not price

c) for an inferior good, quantity demanded decreases as price falls

d) low prices of smaller burgers suggest they have low nutritional value

Does the news clip suggest that the burger market violates the law of demand?

a) The assumption of ceteris paribus is violated when income changes.

b) A change in income rather than a change in price changes the quantity demanded.

c) The news clip describes a change in demand.

d) The law of demand holds for normal goods but not inferior goods.