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

Answer 1

When income levels of consumers increase, the demand for normal goods increases while the demand for inferior goods decreases.

In this case:

• Cell phones are considered a normal good, so as income increases, the demand curve for cell phones would shift to the right.
• Instant noodles are considered an inferior good, so as income increases, the demand curve for instant noodles would shift to the left.

Therefore, 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.