Last year, Joan bought 50 pounds of hamburger when her household income was $40,000.This year, her household income was only $30,000 and Joan bought 60 pounds of hamburger.Holding everything else constant, Joan's income elasticity of demand for hamburger is
A)positive, so Joan considers hamburger to be an inferior good.
B)negative, so Joan considers hamburger to be an inferior good.
C)positive, so Joan considers hamburger to be a normal good and a necessity.
D)negative, so Joan considers hamburger to be a normal good.

Question

Quizplus · Accepted Answer

Income elasticity of demand is negative when the quantity demanded increases as income decreases, indicating that hamburger is an inferior good for Joan.

Last Year, Joan Bought 50 Pounds of Hamburger When Her