Will Feckless Unexpectedly Inherits $10,000 from a Rich Uncle

question 37

Multiple Choice

Will Feckless unexpectedly inherits $10,000 from a rich uncle.He is observed to consume fewer hamburgers than he used to.

• A)Hamburgers are a Giffen good for Will.
• B)Hamburgers are a normal good for Will.
• C)Will's Engel curve for hamburgers is vertical.
• D)Will's Engel curve for hamburgers is horizontal.
• E)Will's preferences are not homothetic.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods or services, used to predict economic behavior.

Curds

The solid parts of milk that coagulate when milk is soured or treated with enzymes, used in cheese-making.

Whey

A liquid by-product of cheese production, rich in proteins and lactose, commonly used as a dietary supplement and in various food products.

Cocoa

A key agricultural commodity produced from the seeds of the cacao tree, used primarily in the making of chocolate.