Last Year,Joan Bought 50 Pounds of Hamburger When Her Household's

question 178

Multiple Choice

Last year,Joan bought 50 pounds of hamburger when her household's income was $40,000.This year,her household income was only $30,000 and Joan bought 60 pounds of hamburger.All else constant,Joan's income elasticity of demand for hamburger is

• A)positive,so Joan considers hamburger to be an inferior good.
• B)positive,so Joan considers hamburger to be a normal good and a necessity.
• C)negative,so Joan considers hamburger to be an inferior good.
• D)negative,so Joan considers hamburger to be a normal good but not a necessity.

Comprehend the impact of technological changes on the demand for inputs.

Grasp the relationship between the production/use of capital and labor productivity, along with its effects on wages.

Understand the conditions for profit maximization in terms of resource allocation.

Recognize how shifts in factor demand result from changes in various economic conditions.