If income levels of consumers within a given economy increase, what would happen to the demand curve for cell phones, a normal good, and the demand curve for instant noodles, an inferior good?(1 point)

Question

Responses

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would remain unchanged.
The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would remain unchanged.

The demand curve for cell phones would shift to the left, and the demand curve for instant noodles would shift to the right.
The demand curve for cell phones would shift to the left, and the demand curve for instant noodles would shift to the right.

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.
The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.

The demand curves would both shift to the right.

Answer 1

When income levels of consumers increase:

• For cell phones, which are considered a normal good, the demand curve would shift to the right. This is because as consumers have more income, they are likely to purchase more cell phones.

• For instant noodles, which are considered an inferior good, the demand curve would shift to the left. As consumers' income rises, they tend to buy fewer inferior goods, such as instant noodles, and opt for higher-quality alternatives instead.

Based on this analysis, the correct response is:

The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.