Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
As income increases, the demand for instant noodles decreases.
B
As income increases, the demand for organic vegetables increases.
C
As the price of coffee rises, the demand for cream decreases.
D
As income increases, the demand for luxury cars increases.
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 increases. For example, imagine a student who usually buys instant noodles because they are cheap and easy to prepare. If this student gets a part-time job and starts earning more money, they might choose to buy fresh vegetables and meat instead, reducing their purchases of instant noodles. This shows that as their financial situation improves, they prefer higher-quality food options, illustrating the idea of an inferior good. In contrast, if they continued to buy instant noodles even with more money, it would not be considered an inferior good.
Detailed Explanation
When people earn more money, they often buy less of cheaper items, like instant noodles. Other options are incorrect because This option suggests that more money leads to buying more organic vegetables; Here, the idea is that when coffee costs more, people buy less cream.
Key Concepts
Demand elasticity
Topic
Inferior and Complementary Goods
Difficulty
easy level question
Cognitive Level
understand
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