Yang just got a big promotion at work, which includes a sizable pay increase. Yang's demand for ramen noodles, an inferior good, will likely _____ and his demand curve will _____.
A) decrease; shift to the right
B) decrease; shift to the left
C) increase; shift to the right
D) decrease; not move, although there will be movement along the curve

Question

Quizplus · Accepted Answer

Since Yang's income has increased, he will likely switch from purchasing ramen noodles (an inferior good) to purchasing higher-quality foods (normal goods). Therefore, his demand for ramen noodles will decrease, and his demand curve will shift to the left.

Yang Just Got a Big Promotion at Work, Which Includes