Last year,Ravi bought six pairs of shoes when his income was $60,000.This year,his income is $70,000 and he purchased 10 pairs of shoes.All else constant,what can we determine about Ravi
A)He has a price-elastic demand for shoes.
B)He considers shoes to be an inferior good.
C)He considers shoes to be a normal good.
D)He has a price-inelastic demand for shoes.

Question

Quizplus · Accepted Answer

Ravi's increase in shoe purchases indicates that he considers shoes to be a normal good - as his income went up, he chose to spend more on shoes. The question doesn't provide any information on the price of the shoes or their availability, so we can't determine whether Ravi's demand for shoes is price-elastic or price-inelastic. There's also no evidence to suggest that Ravi considers shoes to be an inferior good.

Last Year,Ravi Bought Six Pairs of Shoes When His Income