Question
After graduating from college, you get a new job making more money. Suppose that you decide to buy more steak rather than hamburger. Would you consider hamburger?
A normal good.
A complementary good.
A neutral good.
An inferior good.
A normal good.
A complementary good.
A neutral good.
An inferior good.
Answers
GPT-4o mini
In this scenario, since you are choosing to buy more steak instead of hamburger after getting a new job with a higher income, hamburger would be considered an **inferior good**.
Inferior goods are those for which demand decreases as consumer income rises. When you were on a lower income, you may have purchased more hamburgers; however, with increased income, you are opting for steak, which is typically seen as a higher-quality or more expensive option.
Inferior goods are those for which demand decreases as consumer income rises. When you were on a lower income, you may have purchased more hamburgers; however, with increased income, you are opting for steak, which is typically seen as a higher-quality or more expensive option.