Last year, Sheila bought 6 pairs of shoes when her income wa$40,000. This year, her income is $52,000 and she purchased 7pairs of shoes. Holding other factors constant and using themidpoint method, it follows that Sheila's elasticity of demand isabout. 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.

Last year, Sheila bought 6 pairs of shoes when her income wa$40,000. This year, her income is $52,000 and she purchased 7pairs of shoes. Holding other factors constant and using themidpoint method, it follows that Sheila's elasticity of demand isabout. 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Last year, Sheila bought 6 pairs of shoes when her income wa$40,000. This year, her income is $52,000 and she purchased
7pairs of shoes. Holding other factors constant and using themidpoint method, it follows that Sheila's elasticity of demand
isabout.
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.

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