Last Year,Olivia Bought 6 Pairs of Shoes When Her Income

question 287

Multiple Choice

Last year,Olivia bought 6 pairs of shoes when her income was $50,000.This year,her income is $55,000,and she purchased 8 pairs of shoes.Holding other factors constant and using the midpoint method,it follows that Olivia's income elasticity of demand is about

• A) 0.33,and Olivia regards shoes as an inferior good.
• B) 0.33,and Olivia regards shoes as a normal good.
• C) 3.00,and Olivia regards shoes as an inferior good.
• D) 3.00,and Olivia regards shoes as a normal good.

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Definitions:

Employer Liability

Refers to an employer's legal responsibility for the harms caused by their employees or agents while they are performing duties within the scope of their employment.

Incurred

Refers to costs, expenses, or liabilities that have been realized or obtained by a business, usually through its operations.

Fringe Benefits

Benefits provided to employees in addition to wages and salaries.

Recognized

In accounting, refers to the formal acknowledgment of a financial transaction or position within financial statements.