Multiple Choice
The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
-Last year, Alice bought 40 CDs when her income was $20,000. This year, her income increased to $25,000, and she purchased 48 CDs. We can conclude that:
A) Alice's price elasticity of demand for CDs is equal to 1.
B) Alice's demand for CDs is price-inelastic.
C) Alice's demand for CDs is price-elastic.
D) the income elasticity of demand for CDs is negative.
E) CDs are a normal good.
Correct Answer:

Verified
Correct Answer:
Verified
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