Question

Colmplete Paula graduates from college and her income increases by $30,000. Nothing else changes Paula decreases the quantity of ketchup and chocolate chip cookies that she buys and increases the quantity of stuffed olives that she buys. For Paula,- O A. ketchup and stuffed olives have become substitutes 0 B. stuffed olives and chocolate chip cookies are normal goods OC. ketchup and chocolate chip cookies are normal goods D. ketchup and chocolate chip cookies are inferior goods 0 fri

Answer 1

With increase in income, since the quantity of olives increases, olives is a normal good and with increase in income since the quantity of ketchup and chocolate chips are reduced, they are inferior goods.

Therefore (D) is the answer.