When her income increased from $10,000 to $20,000 . Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and her consumption of soy-burgers increased from 2 pounds to 4 pounds. We can conclude that for Heather, macaroni
a. and soy-burgers are both normal goods with income elasticities equal to 1.
b. is an inferior good and soy-burgers are normal goods; both have income elasticities of 1.
c. is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1.
d. and soy-burgers are both inferior goods with income elasticities equal to -1.
c
Economics
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A change in demand is said to take place when there is a
A) shift of the demand curve. B) shift of the supply curve. C) price change. D) movement along the demand curve. E) quantity change.
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Using the above table, at a price of $5 there will be a
A) shortage of 20 units. B) shortage of 10 units. C) surplus of 20 units. D) surplus of 10 units.
Economics