Lobster is considered a
A)both a normal and inferior good, depending on location
B)inferior good.
C)a normal good.
D)both a substitute and a complement good, depending on location.

Question

Quizplus · Accepted Answer

Lobster is considered a normal good in areas where it is plentiful and relatively inexpensive, such as coastal regions, but becomes an inferior good in areas where it is more expensive and less accessible. For example, in areas far away from the coast or in countries where it is considered a luxury item, lobster may be purchased less frequently as income levels decrease, making it an inferior good. Therefore, option A is the most appropriate choice. Option B and D are incorrect because lobster is not always an inferior good or a substitute/complement good. Option C is partially correct but not the best choice as it does not consider variations in income and location.

Lobster Is Considered a