Last Year, Sefton Purchased 60 Pounds of Potatoes to Feed

question 89

Multiple Choice

Last year, Sefton purchased 60 pounds of potatoes to feed his family of five when his household income was $30,000.This year, his household income fell to $20,000 and Sefton purchased 80 pounds of potatoes.All else constant, Sefton's income elasticity of demand for potatoes is

• A)negative, so Sefton considers potatoes to be an inferior good.
• B)positive, so Sefton considers potatoes to be an inferior good.
• C)positive, so Sefton considers potatoes to be a normal good and a necessity.
• D)negative, so Sefton considers potatoes to be a normal good.

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Definitions:

Postconventional

Pertains to a level of moral reasoning that is beyond social conventions, where actions are judged based on ethical principles rather than societal norms or expectations.

Cognitive Development

The process of growth and change in intellectual capabilities that occurs as people age, involving learning, memory, problem-solving, and decision-making.

Formal Operational

The stage of cognitive development in Piaget’s theory characterized by the ability to think logically about abstract concepts.

Advanced Moral Reasoning

Advanced moral reasoning is a level of ethical thinking that goes beyond personal or cultural norms to consider the greater good and principles of justice, fairness, and human rights.