Question 16Last year, Carolyn bought 6 pairs of earrings when her income was $40,000. This year, her income is $52,000, and she purchased 7 pairs of earrings. Holding other factors constant, it follows that Carolyn's income elasticity ofdemand is aboutO a. 0.59, and Carolyn regards earrings as an inferior good.O b. 0.59, and Carolyn regards earrings as a normal good.O c. 1.7, and Carolyn regards earrings as an inferior good.O d. 1.7, and Carolyn regards earrings as a normal good.

Income elastic city of demand shows the responsiveness of quantity demanded with respect to income.…

Last year, Carolyn bought 6 pairs of earrings when her income was $40,00 demand is about O a. 0.59, and Carolyn regards earrings as an inferior good. b. 0.59, and Carolyn regards earrings as a normal good. c. 1.7, and Carolyn regards earrings as an inferior good. d. 1.7, and Carolyn regards earrings as a normal good.

Last year, Carolyn bought 6 pairs of earrings when her income was $40,00 demand is about O a. 0.59, and Carolyn regards earrings as an inferior good. b. 0.59, and Carolyn regards earrings as a normal good. c. 1.7, and Carolyn regards earrings as an inferior good. d. 1.7, and Carolyn regards earrings as a normal good.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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