There are only two goods for John to consume: food and clothing.If clothing is an inferior good for John when his income rises to $100,000,then food is
A) also an inferior good.
B) a normal good.
C) either inferior or normal could be possible.
D) Not enough information

Question

Quizplus · Accepted Answer

If clothing is an inferior good, it means that as John's income increases, he will consume less clothing. Therefore, for food to be an inferior good as well, John would have to consume less food as his income increases. This is unlikely as food is a necessity and typically considered a normal good. Therefore, the most likely scenario is that food is a normal good.

There Are Only Two Goods for John to Consume: Food