Which of the following products would be most likely to see a rise in demand due a drop in incomes?
A)instant ramen noodles
B)lobster dinners
C)new cars
D)hotel rooms

Question

Quizplus · Accepted Answer

Instant ramen noodles are a cheaper alternative for meals and are often consumed by those on a tight budget. A drop in income would make people more price-sensitive and thus more likely to turn to cheaper options such as instant ramen noodles. Lobster dinners, new cars, and hotel rooms are all luxury or non-essential items that are less likely to see a rise in demand during an economic downturn.

Which of the Following Products Would Be Most Likely to See