Asked by Monique Duplessis on Apr 26, 2024
Verified
In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)
A) normal good.
B) complementary good.
C) luxury.
D) inferior good.
Inferior Good
A type of good whose demand decreases as the income of the consumer increases.
Instant Noodles
Pre-cooked and dried noodle block, typically sold with a packet of flavoring powder and/or seasoning oil, intended for quick preparation.
- Clarify the distinctions among normative goods, defective goods, and replacement solutions.
Verified Answer
MA
Maryam AdepitanMay 02, 2024
Final Answer :
D
Explanation :
Inferior goods are those that people consume less of as their income rises, which fits the description of instant noodles in this scenario. As your income increased, your preference shifted away from instant noodles, indicating you view them as an inferior good.
Learning Objectives
- Clarify the distinctions among normative goods, defective goods, and replacement solutions.