Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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