Pete Consumes Two Goods, Rice and Fish

question 463

Multiple Choice

Pete consumes two goods, rice and fish. When the price of fish rises, he consumes less fish. When the price of rice rises, he consumes more rice. For Pete,

• A)fish is not a Giffen good but rice is.
• B)rice is not a Giffen good but fish is.
• C)both fish and rice are normal goods.
• D)both fish and rice are Giffen goods.

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Definitions:

Professional

A person engaged in a specified activity as one's main occupation rather than as an amateur.

Negligent

Failing to exercise the care that a reasonably prudent person would exhibit under similar circumstances.

Foreseen Users

Individuals who are reasonably anticipated to use a product or service, considered by manufacturers and service providers in liability assessments.

Near Privity

A legal doctrine that expands the scope of who can sue for breach of contract to include parties with a close enough relationship to the transaction, though not directly involved.