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As Part of Recent Cutbacks,Paul Just Accepted a 10% Cut

Question 42

Multiple Choice

As part of recent cutbacks,Paul just accepted a 10% cut in pay.Now he brews coffee at home instead of stopping at Starbucks every day.Based on this behavior,we can say:


A) home-brewed coffee is a normal good,and Starbucks coffee is an inferior good for Paul.
B) home-brewed coffee and Starbucks coffee are substitute goods for Paul.
C) home-brewed coffee will become a normal good for Paul over time.
D) We cannot make any of these assumptions about Paul.

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