At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee. On the way to the shop, Hannah finds an extra $2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means:
A) Doughnuts are an inferior good and coffee is a normal good for Hannah.
B) Doughnuts are a normal good and coffee is an inferior good for Hannah.
C) Doughnuts and coffee are normal goods for Hannah.
D) Doughnuts and coffee are inferior goods for Hannah.

Question

Quizplus · Accepted Answer

Since Hannah consistently buys two doughnuts and a coffee, it can be inferred that both doughnuts and coffee are normal goods for her. The fact that she found extra money and chose to buy an additional doughnut and coffee further supports the idea that they are both normal goods for her.

At Revolution Doughnuts in Fort Collins, Colorado, a Cup of Coffee