If a casino locates in a small suburban/rural area within 20 miles of a larger city that already has a casino, the degree of "local substitution" is likely to be

Refer to the scenario above. Which of the following is true if Sarah is optimizing in levels?

A) An optimizer will rent the hotel for three days if the total benefit of staying for three days exceeds the total benefits of staying for two days. B) An optimizer will rent the hotel room for three days if the cost of staying for two days exceeds the cost of staying for three days. C) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days. D) An optimizer will rent the hotel room for three days if the net benefit of staying for the third day is negative.

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain

What will be an ideal response?