A 10 percent increase in income leads to a 15% decrease in the quantityof Cheetos demanded but no change in the price of Cheetos. From thisinformation, we can assume:O Cheetos are an inferior good and price elasticity of demand is less than 1.O Cheetos are a normal good and price elasticity of demand is greater than 1.Cheetos are an inferior good and price elasticity of supply is equal to zero.Cheetos are an inferior good and price elasticity of supply is infinite.

A 10 percent increase in income leads to a 15% decrease in the quantity of Cheetos demanded but no change in the price of Cheetos. From this information, we can assume: O Cheetos are an inferior good and price elasticity of demand is less than 1. Cheetos are a normal good and price elasticity of demand is greater than 1. O Cheetos are an inferior good and price elasticity of supply is equal to zero. Cheetos are an inferior good and price elasticity of supply is infinite.

A 10 percent increase in income leads to a 15% decrease in the quantity of Cheetos demanded but no change in the price of Cheetos. From this information, we can assume: O Cheetos are an inferior good and price elasticity of demand is less than 1. Cheetos are a normal good and price elasticity of demand is greater than 1. O Cheetos are an inferior good and price elasticity of supply is equal to zero. Cheetos are an inferior good and price elasticity of supply is infinite.

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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Similar questions

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