While in College,John and Bethany Each Buy Five Packages of Mac-N-Cheese

question 202

Multiple Choice

While in college,John and Bethany each buy five packages of mac-n-cheese per week.After they graduate and have full-time jobs,John buys six packages per week,but Bethany buys only two packages per week.When looking at income elasticity of demand for mac-n-cheese,John's

• A)is negative,and Bethany's is positive.
• B)is positive,and Bethany's is negative.
• C)is zero,and Bethany's approaches infinity.
• D)approaches infinity,and Bethany's is zero.

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Definitions:

Grocery Store

A grocery store is a retail establishment that specializes in selling food and other household goods to consumers for everyday consumption.

Customizing Services

Modifying or tailoring services to meet the specific needs or preferences of individual customers.

Variable Nature of Services

Describes the characteristics of services that make them less consistent and more difficult to standardize compared to physical products.

Intangible

Refers to something that cannot be physically touched or measured but holds value, such as intellectual property, brand reputation, or goodwill.