Linesha, a college student working part-time received a wage increase.An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs.Based on this information
A)DVDs and Blu-ray discs are substitutes.
B)Blu-ray discs are normal goods and DVDs are inferior goods.
C)DVDs and Blu-ray discs are normal goods.
D)the cross-price elasticity between DVDs and Blu-ray discs is negative.

Question

Quizplus · Accepted Answer

Linesha's behavior suggests that as her income increased, she bought more Blu-ray discs and fewer DVDs, indicating Blu-ray discs are normal goods and DVDs are inferior goods.

Linesha, a College Student Working Part-Time Received a Wage Increase