As Part of Recent Cutbacks,Paul Just Accepted a 10% Cut

question 55

Multiple Choice

As part of recent cutbacks,Paul just accepted a 10% cut in pay.Now he brews coffee at home instead of stopping at Starbucks every day.Based on this behavior,we can say home-brewed coffee:

• A) is a normal good, and Starbucks coffee is an inferior good for Paul.
• B) and Starbucks coffee are normal goods for Paul.
• C) will become a normal good for Paul over time.
• D) is an inferior good, while Starbucks coffee is a normal good for Paul.

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