📚 Learning Guide
Inferior and Complementary Goods
easy

Which of the following is an example of an inferior good?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Organic vegetables

B

Instant noodles

C

Luxury cars

D

Designer handbags

Understanding the Answer

Let's break down why this is correct

Answer

An inferior good is a type of product that people buy less of when their income rises, as they can now afford better alternatives. A classic example of an inferior good is instant noodles. When someone’s income increases, they might choose to buy fresh pasta or gourmet meals instead of instant noodles. This shows that the demand for instant noodles decreases as people get richer, making it an inferior good. Understanding this concept helps us see how consumer choices change based on their financial situation.

Detailed Explanation

Instant noodles are an inferior good. Other options are incorrect because Organic vegetables are not inferior goods; Luxury cars are not inferior goods.

Key Concepts

Inferior goods
Topic

Inferior and Complementary Goods

Difficulty

easy level question

Cognitive Level

understand

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