Question

If the demand for noodles increases as income decreases, noodles are

Select one:

a. inferior good.

b. complementary good.

c. substitute good.

d. normal good.

Answer 1

Inferior products are thise whose demand increases as income falls or demand decreases when income rises.

Complementary goods demand increases with increase in complementing good for example increases in demand of ink cartridges with increase in demand of printers

Substitute products are those whose demand increases due to unavailability or price increase of other products. for example tea and coffee

Normal good is something that moves in line with income, i.e demand increases with income.

Hence here Noodle is inferior product