When Brenda was in college, she worked part-time delivering pizzas and she ate five boxes of macaroni and cheese per week. After graduation, she became a high school teacher and ate only two boxes of macaroni and cheese per week. From this information,
a. macaroni and cheese is a normal good for Brenda
b. the law of demand applies to macaroni and cheese for Brenda
c. macaroni and cheese are substitute goods
d. macaroni and cheese is an inferior good for Brenda
e. Brenda's income elasticity of demand for macaroni and cheese is positive
D
You might also like to view...
The demand for durable goods
A) has decreased over time. B) declines by a greater percentage than does GDP during a recession. C) declines by a smaller percentage than does GDP during a recession. D) rises by a greater percentage than does GDP during a recession.
Suppose real GDP is $800 billion when the MPC is 0.80, and people decide to increase their saving by $30 billion. Before this change, the economy was in equilibrium with people intending to save $100 billion and producers intending to invest $100 billion. The new equilibrium level of real GDP is:
A. $600 billion. B. $650 billion. C. $680 billion. D. $730 billion.