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

Verified
Correct Answer:
Verified
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