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, then as income rises, John will buy less of it. Therefore, he will have more money to spend on other things, including food. So, food is likely to be a normal good for John. Therefore, the correct answer is B.

There Are Only Two Goods for John to Consume: Food