In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A)there is excess demand for ramen noodles.
B)the equilibrium price for ramen noodles is too high.
C)college graduates have a high reservation price for ramen noodles.
D)ramen noodles are an inferior good.

Question

Quizplus · Accepted Answer

For inferior goods, an increase in income leads to a decrease in consumption.

In Surveying Their Alumni, State U's Economics Department Discovered That