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When Income Increases from $30,000 a Year to $40,000 a Year

Question 44

Multiple Choice

When income increases from $30,000 a year to $40,000 a year, the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year. For Sara, the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.


A) 1/3; a normal
B) -4.5; an inferior
C) 3; a normal
D) 1/3; an inferior
E) 4.5 a normal

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