Table 10-2 Table 10-2 Above Shows Keira's Utility from Soup and Sandwiches

question 213

Multiple Choice

Table 10-2

Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 10-2.Holding prices constant, when Keira's income changed from $18 to $23, her utility maximizing bundle changed.Based on your answers to her optimal choices at the two income levels, what type of goods are soup and sandwiches?

• A)Soup is an inferior good and sandwiches are a normal good.
• B)Soup is a normal good and sandwiches are an inferior good.
• C)Both soup and sandwiches are normal goods.
• D)Both soup and sandwiches are inferior goods.

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