There are only two goods for John to consume: food and clothing. If clothing is an inferior good for John when his income rises to $100,000, then food is
A) also an inferior good.
B) a normal good.
C) Either inferior or normal could be possible.
D) Not enough information
B
Economics
You might also like to view...
Explain why a firm can earn more profit by price discrimination than from setting a uniform price
What will be an ideal response?
Economics
Assume that expected inflation is based on the following: ?et = ??t-1. An increase in ? will cause
A) an increase in the natural rate of unemployment. B) a reduction in the natural rate of unemployment. C) no change in the natural rate of unemployment. D) inflation in period t to be more responsive to changes in unemployment in period t.
Economics