Multiple Choice
Last year,Sheila bought 6 pairs of shoes when her income was $40,000.This year,her income is $52,000 and she purchased 7 pairs of shoes.Holding other factors constant and using the midpoint method,it follows that Sheila's income elasticity of demand is about
A) 0.59,and Sheila regards shoes as an inferior good.
B) 0.59,and Sheila regards shoes as a normal good.
C) 1.7,and Sheila regards shoes as an inferior good.
D) 1.7,and Sheila regards shoes as a normal good.
Correct Answer:

Verified
Correct Answer:
Verified
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