A normal good has a ________ income elasticity of demand and quantity demanded ________ as income rises

Suppose purchasing power parity exists in the car stereo market in the United States and Australia. If a car stereo costs $230 in the United States and the exchange rate is $1 = $AUD1.67, the same car stereo may be purchased in Australia for approximately:

a. $AUD 138. b. $AUD 230. c. $AUD 2,300. d. $AUD 384. e. $AUD 108.

For a given individual, as their income decreases, their utility from that income

A. decreases at an increasing rate. B. increases at an increasing rate. C. decreases at a decreasing rate. D. increases at a decreasing rate.