Question 16Last year, Carolyn bought 6 pairs of earrings when her income was $40,000. This year, her income is $52,000, and she purchased 7 pairs of earrings. Holding other factors constant, it follows that Carolyn's income elasticity ofdemand is aboutO a. 0.59, and Carolyn regards earrings as an inferior good.O b. 0.59, and Carolyn regards earrings as a normal good.O c. 1.7, and Carolyn regards earrings as an inferior good.O d. 1.7, and Carolyn regards earrings as a normal good.

Income elastic city of demand shows the responsiveness of quantity demanded with respect to income.…

Last year, Carolyn bought 6 pairs of earrings when her income was $40,00 demand is about O a. 0.59, and Carolyn regards earrings as an inferior good. b. 0.59, and Carolyn regards earrings as a normal good. c. 1.7, and Carolyn regards earrings as an inferior good. d. 1.7, and Carolyn regards earrings as a normal good.

Last year, Carolyn bought 6 pairs of earrings when her income was $40,00 demand is about O a. 0.59, and Carolyn regards earrings as an inferior good. b. 0.59, and Carolyn regards earrings as a normal good. c. 1.7, and Carolyn regards earrings as an inferior good. d. 1.7, and Carolyn regards earrings as a normal good.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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