Stephen graduates from college and his income increases by $30,000. Nothing else changes. Stephen decreases the quantity oframen noodles and chocolate chip cookies that he buys and increases the quantity of cla For Stephen,

A. ramen noodles and chocolate chip cookies are inferior goods

B. ramen noodles and classical music CDs have become substitutes

c. ramen noodles and chocolate chip cookies have become complements

D. classical music CDs and chocolate chip cookies are normal goods

Question

Business

Roselyn Skinner

14 October, 14:43

Stephen graduates from college and his income increases by $30,000. Nothing else changes. Stephen decreases the quantity oframen noodles and chocolate chip cookies that he buys and increases the quantity of cla For Stephen,

A. ramen noodles and chocolate chip cookies are inferior goods

B. ramen noodles and classical music CDs have become substitutes

c. ramen noodles and chocolate chip cookies have become complements

D. classical music CDs and chocolate chip cookies are normal goods

+3

Answers (1)

Know the Answer?

Angelique Randolph · Answer 1

Answer: A. ramen noodles and chocolate chip cookies are inferior goods

Explanation:

Inferior goods are goods that experience decrease in demand when consumers experience increase in income.

Inferior goods has to do with social economic class, certain people at lower socio economic class go for certain goods because of its affordability not minding quality, same people might stop demanding for such good at a higher socio economic class.