When her income increased from $10,000 to $20,000,Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and her consumption of soy-burgers increased from 2 pounds to 4 pounds.We can conclude that for Heather,
A) macaroni and soy-burgers are both normal goods with income elasticities equal to 1.
B) macaroni is an inferior good and soy-burgers are normal goods;both have income elasticities of 1.
C) macaroni is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1.
D) macaroni and soy-burgers are both inferior goods with income elasticities equal to -1.
Correct Answer:
Verified
Q243: If an increase in income results in
Q257: Which of the following should be held
Q258: Which of the following should be held
Q265: Food and clothing tend to have
A)small income
Q277: Suppose goods A and B are substitutes
Q286: Muriel's income elasticity of demand for football
Q287: Suppose that when the price of good
Q288: Last month,sellers of good Y took in
Q293: Table 5-5 Q295: Assume that a 4 percent increase in
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents