-When John's Income Was Low,he Could Not Afford to Dine

question 12

Multiple Choice

-When John's income was low,he could not afford to dine out and would respond to a pay raise by purchasing more frozen dinners.Now that his income is high,a pay raise causes him to dine out more often and buy fewer frozen dinners.Which graph in the above figure best represents John's Engel curve for frozen dinners?

• A) Graph A
• B) Graph B
• C) Graph C
• D) Graph D

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