Nora Likes to Eat Her Lunch at a Different Fast

question 48

Multiple Choice

Nora likes to eat her lunch at a different fast food restaurant every day, so the amount she spends for lunch per day is a variable. Which of the following would be a reasonable estimate of the standard deviation of this variable?

• A) 3 cents
• B) 1 dollar
• C) 10 dollars
• D) 30 dollars

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Definitions:

Income Effect

The change in consumption resulting from a change in real income, typically due to a change in prices, that can increase or decrease purchasing power.

Affordable Consumption Options

Choices of goods and services that are within the financial reach of a consumer, considering their income and expenses.

Inferior Goods

Goods whose demand decreases when consumer income rises, opposite of normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases.