Answer :
Answer:
Fast food income elasticity of demand is negative and the fast food is an inferior good.
Explanation:
One of the factors that affect how a commodity or goods and services are demanded is the income of the buyers. In economics, when one(economists) tries to measure how goods and services respond to changes in the income of the buyers then the concept to be used is known as the income elasticity of demand. The income elasticity of demand can be represented mathematically as the one below;
income Elasticity of Demand = Percentage change in quantity demanded ÷ Percentage change in income.
So, if we have a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded it means that Fast food income elasticity of demand is negative and the fast food is an inferior good.
This is because as the income rises the demand for the goods decreases.