Last year, Paula's income was $15,000 and she enrolled in 12 hours of courses in college. This year, Paula's income is $35,000 and she is enrolled in 3 hours of courses in college. For Paula, college is a(n) ____ good.
A) inferior
B) normal
C) luxury
D) substitute

Question

Quizplus · Accepted Answer

An inferior good is one where demand decreases as income increases. Since Paula's income increased and her enrollment in college courses decreased, college is considered an inferior good for her.

Last Year, Paula's Income Was $15,000 and She Enrolled in 12