Question

Miles graduates from college and his his income increases by ​$ 35 comma 000 35,000 a year. Nothing else changes. Miles Miles decreases the quantity of hot dogs hot dogs and pretzels pretzels that he he buys and increases the quantity of gourmet ice cream gourmet ice cream that he he buys.

Answer 1

Miles graduates from college and his his income increases by ​$35,000 a year. Nothing else changes. Miles decreases the quantity of hot dogs hot dogs and pretzels that he buys and increases the quantity of gourmet ice cream that he buys.

For Miles, gourmet ice cream is a normal good

Step-by-step explanation:

A normal good is a good for which demand increases when income increases and demand decreases when income decreases.

An inferior good is a good for which demand decreases when income increases and demand increases when income decreases.

Answer 2

hot dogs and pretzels are inferior goods

Step-by-step explanation:

From the question, We are informed about Miles who graduated from college and his his income increases by ​$ 35000 a year. Nothing else changes. Miles Miles decreases the quantity of hot dogs and pretzels that he buys and increases the quantity of gourmet ice cream that he he buys. For Miles, hot dogs and pretzels are inferior goods. In economics, inferior good can be regarded as goods that have a fall in demand whenever there is increase in consumer income, i.e increase in consumer income will bring decrease to such goods, which is opposite to normal goods.