When Rita was a student, she consumed beer with her dinner. Over the years, as her income increased, she substituted beer for a glass of wine. From this information, one can imply that:
A) the law of demand does not hold for beer.
B) wine and beer are complementary goods.
C) Rita considers beer an inferior good.
D) the price elasticity of demand for beer is high.
E) Rita gets more utility from beer than from wine.

Question

Quizplus · Accepted Answer

The Answer is C

When Rita Was a Student, She Consumed Beer with Her