Holding All Other Things Constant, If Ramen Noodles Are an Inferior

question 138

Multiple Choice

Holding all other things constant, if ramen noodles are an inferior good to Vanessa, then as her income increases, her demand curve for ramen noodles:

• A)will shift left.
• B)will shift right.
• C)will not shift at all.
• D)may shift left or right, but we're not sure by how much.

---

Definitions:

P = MC

An economic condition where price equals marginal cost, indicating optimal resource allocation in perfectly competitive markets.

Optimally Allocated

Refers to the distribution of resources in a manner that maximizes efficiency and effectiveness, often resulting in the best possible outcome.

Short-Run Supply

The total quantity of goods and services that producers are willing and able to sell at current prices in a short-term period, often influenced by fixed production capacities.

Long-Run Supply

The total amount of a product or service that is available to the market from all producers over a long period, when all inputs can be adjusted.