As the purchasing power of wealth increases, saving decreases

Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is TRUE?

A) Peanut butter is a normal good, because income elasticity is positive. B) Peanut butter is an inferior good, because income elasticity is positive. C) Peanut butter is a normal good, because income elasticity is less than 1. D) Peanut butter is an inferior good, because income elasticity is less than 1.

Wanda Weeks has decided to stay in a lower-paying position with a local electric company rather than accept a much higher-paying job with a new information technology company. Use a risk model to explain her decision.

What will be an ideal response?