Last year,Sheila bought 6 pairs of shoes when her income was $40,000.This year,her income is $50,000 and she purchased 10 pairs of shoes.Holding other factors constant,it follows that Sheila
A) considers shoes to be a necessity.
B) considers shoes to be an inferior good.
C) considers shoes to be a normal good.
D) has a low price elasticity of demand for shoes.

Question

Quizplus · Accepted Answer

A normal good is one whose demand increases as income increases, holding the prices of other goods constant. Since Sheila bought more shoes (a normal good) when her income increased, we can infer that shoes are a normal good for her.

Last Year,Sheila Bought 6 Pairs of Shoes When Her Income