The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19 pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is approximately -0.5. Given that rice is a good, the manager should stock rice. O A. normal: 109 more O B. inferior: 12.595 more O C. inferior: 12.59 less O D. normal: 12.596 less
The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19 pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is approximately -0.5. Given that rice is a good, the manager should stock rice. O A. normal: 109 more O B. inferior: 12.595 more O C. inferior: 12.59 less O D. normal: 12.596 less
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the
pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income
approximately -0.5. Given that rice is a
good, the manager should stock
rice.
O A. normal: 109 more
O B. inferior: 12.595 more
O C. inferior: 12.59 less
O D. normal: 12.596 less
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