Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Instant noodles are an inferior good, so demand increases as incomes fall.
B
Fresh produce is a complementary good to instant noodles, causing the demand for noodles to rise.
C
Sarah's family prefers instant noodles because they are healthier than fresh produce.
D
Instant noodles are a substitute for fresh produce, leading to decreased demand for the latter.
Understanding the Answer
Let's break down why this is correct
Answer
During an economic recession, many families, including Sarah's, tend to buy more inferior goods. Inferior goods are items that people buy more of when their income decreases because they are cheaper alternatives to more expensive products. In Sarah's case, instant noodles are an example of an inferior good; they cost less than fresh produce and can be a quick meal option. As her family's financial situation becomes tighter during the recession, they may choose instant noodles to save money while still meeting their hunger needs. This behavior shows how economic conditions can influence consumer choices and spending habits.
Detailed Explanation
Instant noodles are considered inferior goods. Other options are incorrect because This answer suggests that fresh produce helps sell more noodles; This answer assumes that instant noodles are healthier, which is not true.
Key Concepts
Inferior Goods
Consumer Behavior
Complementary Goods
Topic
Inferior and Complementary Goods
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.