In response to an increase in income, Stella buys fewer jars of pickles. Based on this statement, we can infer that Stella:
A) considers pickles complements to other goods.
B) has an irrational demand for pickles.
C) considers pickles inferior goods.
D) considers pickles normal goods.

Question

Quizplus · Accepted Answer

Pickles are considered inferior goods in this context because Stella buys fewer of them as her income increases, indicating that she might opt for what she perceives as better or more preferable goods with her higher income. Inferior goods are those for which demand decreases when consumer income rises, unlike normal goods, where demand increases with an increase in income.

In Response to an Increase in Income, Stella Buys Fewer