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When food is an inferior good,and when the income effect is large enough to dominate the substitution effect,the demand curve will be upward-sloping.The consumer is initially at A but,after the price of food falls,moves to B and consumes less. Because the income effect F2F is larger than the substitution effect EF2,the decrease in the price of food leads to a lower quantity of food demanded. When food is an inferior good, and when the income effect is large enough to dominate the substitution effect, the demand curve will be upward-sloping. The consumer is initially at A but, after the price of food falls, moves to B and consumes less. Because the income effect F2F1 is larger than the substitution effect EF2 , the decrease in the price of food leads to a lower quantity of food demanded
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