Empowering Through Education: Shayla's Journey
How does an increase in income affect Shayla's consumption habits?
Given that Shayla enjoys consuming alphabet soup, an inferior good, what can we expect to happen to her consumption patterns as her income rises dramatically after graduating college and landing a job as a data analyst?
Answer
As Shayla's income increases dramatically after graduating college and getting a job as a data analyst, her consumption of alphabet soup, an inferior good, is most likely to decrease.
Explanation
An inferior good is an economic term for a product for which demand decreases as consumer income rises. In Shayla's case, as her income significantly increases after securing a job as a data analyst post-college, her preference for consuming alphabet soup, an inferior good, is expected to decline.
Inferior goods typically include lower-cost options that are chosen more frequently by individuals with lower incomes. As people's financial situations improve, they tend to switch to higher-quality or more expensive alternatives, leading to a decrease in demand for inferior goods like alphabet soup.
Shayla's journey from being a student to a professional data analyst signifies growth and progress in her career and income level. With this advancement, it is natural for her to explore new and potentially better options in terms of consumption, which may result in a reduced interest in consuming alphabet soup.