Question

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n):_______ a. substitute good. b. normal good c. inferior good. d. complementary good.

Answer 1

Inferior good.

Step-by-step explanation:

Inferior goods are those that their demand decreases as the consumer's income increases. They are unlike normal goods that demand increases with increased income.

Inferior goods are usually purchased as a necessity due to low prices. The consumer did not have enough money to purchase what he would have preferred. As income rises the consumer goes for his preference.

In this instance as you graduate college and start earning higher you do not purchase pizzas anymore because to you they are inferior goods.