Multiple Choice
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. Using the midpoint method, we can conclude that for Heather, macaroni
A) and soy-burgers are both normal goods with income elasticities equal to 1.
B) is an inferior good and soy-burgers are normal goods; both have income elasticities of 1.
C) is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1.
D) and soy-burgers are both inferior goods with income elasticities equal to -1.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Suppose that two supply curves pass through
Q19: Suppose the cross-price elasticity of demand between
Q20: In the short run, as compared to
Q21: If demand is perfectly inelastic, the demand
Q22: When demand is inelastic, a decrease in
Q24: When the price of candy bars is
Q25: Scenario 5-1<br><br>Suppose the demand function for good
Q26: Suppose researchers at the University of Wisconsin
Q27: Table 5-6<br>Consider the following demand schedule.<br>
Q28: Cross-price elasticity is used to determine whether