Question

Johnny graduates from college and his income increases by ​$30,000 a year. Nothing else changes.

Johnny decreases the quantity of ramen noodles and french fries that he buys and increases the quantity of winter vacations that he buys.

For Johnny​, ​_______.

A) ramen noodles and french fries are inferior goods

B) ramen noodles and winter vacations are inferior goods

C) winter vacations and french fries have become substitutes

D) ramen noodles and french fries are normal goods

Answer 1

Ramen noodles and french fries are inferior goods for Johnny.

Step-by-step explanation:

In this scenario, Johnny's income increases by $30,000 a year.

He decides to decrease the quantity of ramen noodles and french fries that he buys and increase the quantity of winter vacations that he buys.

This means that ramen noodles and french fries are inferior goods.