Last Year,Shelley Bought 6 Pairs of Designer Jeans When Her

question 359

Multiple Choice

Last year,Shelley bought 6 pairs of designer jeans when her income was $40,000.This year,her income is $50,000,and she purchased 10 pairs of designer jeans.Holding other factors constant,it follows that Shelley

• A) considers designer jeans to be a necessity.
• B) considers designer jeans to be an inferior good.
• C) considers designer jeans to be a normal good.
• D) has a low price elasticity of demand for jeans.

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Definitions:

Company Towns

Communities where nearly all stores and housing are owned by the one company that is also the main employer.

AFL

American Federation of Labor, a national federation of labor unions in the United States.

Samuel Gompers

An American labor union leader and a key figure in the founding of the American Federation of Labor (AFL).

Mediator

A neutral third party who assists in resolving disputes through communication and negotiation.