The In The News article "Recession Eats into Gator Market" states that
A)The demand for alligator skins was inelastic.
B)The quantity demanded for alligator skins fell when income dropped,indicating that the skins were an inferior good.
C)The demand for alligator skins fell when income dropped,indicating that the skins were a normal good.

Question

Quizplus · Accepted Answer

The article states that the recession led to a decrease in demand for luxury goods, including alligator skins. This indicates that alligator skins are a normal good, as the decrease in income led to a decrease in demand. If alligator skins were an inferior good, the decrease in income would actually lead to an increase in demand. Therefore, choice C) is the best answer.

The in the News Article "Recession Eats into Gator Market