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Julie Spends All of Her Income on Gasoline and Pizza

Question 77

Multiple Choice

Julie spends all of her income on gasoline and pizza. Gasoline costs $4 per gallon and pizza costs $2 per slice. When Julie's income is $50 per week, she purchases 5 gallons of gasoline and 15 slices of pizza. When her income rises to $80 per week, she buys 15 gallons of gasoline and 10 slices of pizza. Which of the following statements is true?


A) Both gasoline and pizza are normal goods.
B) Gasoline is a luxury good.
C) Pizza is a luxury good.
D) Both gasoline and pizza are inferior goods.

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