Refer to Table 10-2. Holding prices constant, when Keira's income changed from $18 to $23, her utility maximizing bundle changed. Based on your answers to her optimal choices at the two income levels, what type of goods are soup and sandwiches?
A) Soup is an inferior good and sandwiches are a normal good.
B) Both soup and sandwiches are normal goods.
C) Both soup and sandwiches are inferior goods.
D) Soup is a normal good and sandwiches are an inferior good.
B
You might also like to view...
Who among the following is the most likely to invest in human capital?
A) A person with a low rate of time preference B) A person with a high rate of time preference C) A person with no time preference D) None of the above.
The marginal benefit of an action:
A. equals the additional benefit produced by extra units of X and tends to decrease as X increases. B. equals the additional benefit produced by the total units of X and tends to increase as X increases. C. equals the additional benefit produced by the total units of X and tends to decrease as X increases. D. equals the additional benefit produced by extra units of X and tends to increase as X increases.
Refer to the accompanying figure. The total utility of consuming two pizzas a week is:
A. 25 B. 75 C. 30 D. 55
A firm's inventory is the orders for goods that have yet to be produced.
Answer the following statement true (T) or false (F)