The chapter says that for consumers as a group, Quiznos s Quiznos sandwiches are

Question

The chapter says that for consumers as a group, Quiznos s Quiznos sandwiches are irderior goods and Subway sandwiches are normal goods is student's reasoning is probably accurate because the majonity of taste tests confirm her classdcation B. confused because the classfication of goods as normal or inferior depends on the price of substitutes, not personal preferences right on the money because product quality is ultimately a matter of personal tastes *D confused because the classfication of a good as normal or inderior depends on the response of demand to a change in income

Explanation / Answer

Ans) the correct option is confused because the classification of a good as normal or inferior depends on the response of demand to a change in income.

Since the taste of a particular person does not make the good inferior or normal but the direction of change in demand due to change in income makes the good normal or inferior. When income increases the demand for a normal good increases. When income increases the demand for an inferior good decreases.

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