Johnny Clutch just got a raise from \$900 per week to \$1100 per week. As a result, he decreases the amount of ramen noodles he buys from seven cartons a week to one carton a week. For Johnny, ramen noodles are:

• A. Normal Goods, Necessity
• B. Normal Goods, Luxury
• C. Inferior Goods
• D. Substitute Goods

Answer: (C)

Verified step by step guidance

1. Identify the change in Johnny's income, which increased from \$900 to \$1100 per week.
2. Observe the change in Johnny's consumption of ramen noodles, which decreased from seven cartons to one carton per week.
3. Recall the definition of inferior goods: these are goods for which demand decreases as consumer income rises.
4. Analyze Johnny's behavior: as his income increased, his demand for ramen noodles decreased, which aligns with the definition of inferior goods.
5. Conclude that ramen noodles are considered inferior goods for Johnny, as his consumption decreased with an increase in income.