[amp_mcq option1=”normal goods” option2=”inferior goods” option3=”substitute goods” option4=”complementary goods” correct=”option2″]<\/p>\n
The correct answer is: B. inferior goods<\/strong><\/p>\n Inferior goods are goods whose demand decreases as income increases. This is because as people become wealthier, they tend to substitute inferior goods with more expensive, higher-quality goods. For example, as people earn more money, they may switch from eating ramen noodles to eating at restaurants.<\/p>\n Normal goods are goods whose demand increases as income increases. This is because as people become wealthier, they can afford to buy more of these goods. For example, as people earn more money, they may buy more clothes, cars, or vacations.<\/p>\n Substitute goods are goods that can be used in place of each other. For example, coffee and tea are substitute goods. If the price of coffee goes up, people may substitute tea for coffee.<\/p>\n Complementary goods are goods that are used together. For example, cars and gasoline are complementary goods. If the price of cars goes up, people may buy fewer cars, which will decrease the demand for gasoline.<\/p>\n I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”normal goods” option2=”inferior goods” option3=”substitute goods” option4=”complementary goods” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-44118","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n