Ramen Noodles Were Hotter Than Ever in 2010

Multiple Choice

Ramen noodles were hotter than ever in 2010. Considered a bargain meal for cash-starved college students... In 2010, 4 billion individual packets were devoured in the United States, a 4 percent increase over 2006. Once students leave college for that first well-paying job, however, they stop eating Ramen. If the price of ramen falls, and income remains the same, describe the substitution and income effects that occur.

A) Both the substitution and income effects would be positive.
B) The substitution effect would be negative and the income effect would be positive.
C) Both the substitution and income effects would be negative.
D) The substitution effect would be positive and the income effect would be negative.