You receive a big raise at work.As a result of your now higher income,you stop bringing your lunch from home and start eating lunch at a nearby restaurant.Your homemade lunches must be
A)A substitute
B)A complement
C)Normal goods
D)Inferior goods
E)Standardized products

Question

Quizplus · Accepted Answer

Homemade lunches are generally considered inferior goods as people tend to consume more of them when their income is lower and opt for more expensive options when they have more disposable income. So, when the person receives a raise, they switch from the inferior good (homemade lunch) to the more expensive option (restaurant).

You Receive a Big Raise at Work