In Figure 5-2, margarine is a.an inferior good. b.a negative good. c.a normal good d.a necessary good. e.quite price-elastic. Figure 5-2Quantity PurchasedCoffeeIncome$25,000$50,000AutomobilesMargarine21083N3

When income increase from $25,000 to $50,000 the demand also increase from 1 to 3 units. This helps…

Answered: margarine is a. an inferior…

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margarine is a. an inferior good. b. a negative good. c. a normal good d. a necessary good. e. quite price-elastic.

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

In Figure 5-2, margarine is

	a.	an inferior good.
	b.	a negative good.
	c.	a normal good
	d.	a necessary good.
	e.	quite price-elastic.

Figure 5-2
Quantity Purchased
Coffee
Income
$25,000
$50,000
Automobiles
Margarine
2
10
8
3
N3

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