The chapter says that for consumers as a group, Quiznos sandwiches are normal goods and Subway sandwiches are inferior goods. But I like the taste of Subway sandwiches better than I like the taste of Quiznos sandwiches, so for me Quiznos sandwiches are inferior goods and Subway sandwiches are normal goods." This student's reasoning is

Question

Business

Paige Barnett

29 January, 01:44

The chapter says that for consumers as a group, Quiznos sandwiches are normal goods and Subway sandwiches are inferior goods. But I like the taste of Subway sandwiches better than I like the taste of Quiznos sandwiches, so for me Quiznos sandwiches are inferior goods and Subway sandwiches are normal goods." This student's reasoning is

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Answers (1)

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Renee Day · Answer 1

confused

Explanation:

The goods whose demand decreases in the market when the consumer income rises are known as inferior goods.

The goods whose demand increases in the market when the consumer income rises are known as normal goods.

Thus, the reasoning of the student is confused as the classification of the goods on the basics of normal or inferior depends on response of the demand when there is a change in consumer's income. Thus, the student's own perception about such classification is confused.