Question

College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. when they finish school and start careers, their consumption of both goods frequently declines. this suggests that ramen noodles and boxed macaroni and cheese are: inferior goods. normal goods. complementary goods. substitute goods.

Answer 1

They are SUBSTITUTE GOODS. Substitute goods refers to goods which can replaced one another in term of consumption as a result of changed conditions. The demand for a substitute good A will increase when the price of a substitute good B increase, that is, people will start buying more of good A if the price of B increases.