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 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 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 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 curves would both shift to the right.

Answer 1

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.

Here's the reasoning:

• Cell phones are considered normal goods, which means that as consumer income increases, the demand for them also increases. Thus, the demand curve for cell phones shifts to the right.

• Instant noodles are considered inferior goods, which means that as consumer income increases, the demand for them decreases because consumers tend to purchase less of these goods as their income rises. Therefore, the demand curve for instant noodles shifts to the left.