Price and quantity of peanut butter


Suppose you manage a grocery store. If peanut butter is an inferior good, what do you suppose would happen to the price and quantity of peanut butter as incomes fall during an economic recession?

the price would increase and the quantity decrease

the price and quantity would both increase

the price and quantity would both decrease

the price would decrease and the quantity increase

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Microeconomics: Price and quantity of peanut butter
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