Multiple Choice
When Joe's income is $100 per week, he spends $20 per week on pizza. When his income rises to $110 per week, he spends $25 per week on pizza. If the price of pizza remains constant, this information implies that for Joe:
A) pizza is a normal good and a luxury.
B) pizza is a normal good and a necessity.
C) pizza is an inferior good, since his expenditure rose by less than the increase in income.
D) demand for pizza is price-elastic.
Correct Answer:

Verified
Correct Answer:
Verified
Q33: An important determinant of the price elasticity
Q57: The price elasticity of the supply of
Q98: Suppose the cross-price elasticity between two goods
Q110: The price of coffee increases by 10%,and
Q132: Use the following to answer questions:<br>Figure: Supply
Q134: Use the following to answer questions:<br>Figure: The
Q138: Use the following to answer questions:<br>Figure: The
Q139: Use the following to answer questions:<br>Table: Price
Q142: The income elasticity of demand measures:<br>A) how
Q181: If the price elasticity of demand is