After getting a raise at work,Jennie now regularly buys steak instead of hamburger.Based on this behavior,we can assume:

Question

Quizplus · Accepted Answer

Jennie's increased consumption of steak after receiving a raise indicates that her income elasticity of demand for steak is positive, indicating that it is a normal good for her. At the same time, her decreased consumption of hamburger implies that her income elasticity of demand for hamburger is negative, indicating that it is an inferior good for her. Therefore, option A is the correct answer.

After Getting a Raise at Work,Jennie Now Regularly Buys Steak