Galina is a struggling college student. She likes to eat lobster, but because she cannot afford it, she substitutes spam for the lobster. For Galina, spam is:
A) a normal good.
B) an inferior good.
C) a complement good.
D) a luxury good.

Question

Quizplus · Accepted Answer

An inferior good is one that consumers turn to when they are unable to afford their preferred, more expensive goods. In this case, Galina substitutes spam for lobster (a more expensive preference) due to budget constraints, making spam an inferior good for her.

Galina Is a Struggling College Student