If your income rises by 25 percent and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles are a(n)
A) substitute.
B) normal good.
C) complement.
D) inferior good.

Question

Quizplus · Accepted Answer

Ramen Noodles are considered an inferior good because as income rises, people tend to switch to higher quality and more expensive food options, resulting in a decrease in demand for Ramen Noodles.

If Your Income Rises by 25 Percent And, as a Result