Question

Will unexpectedly gets a $10,000 increase to his salary. After the salary increase, Will consumes fewer...

Will unexpectedly gets a $10,000 increase to his salary. After the salary increase, Will consumes fewer hamburgers than before.

Group of answer choices

a. Will’s Engel curve for hamburgers is horizontal.

b. Will’s Engel curve for hamburgers is vertical.

c. Hamburgers are an inferior good for Will.

d. Hamburgers are a normal good for Will.

e. Hamburgers are a Giffen good for Will.

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Homework Answers

Answer #1

Answer) Here Will 's income increases and his demand for hamburger decreases,this is the case with inferior goods,that is when consumer gets an income increase,they can afford what they they think are better products for them and in process their demand for certain goods(hamburgers in this case) which they consider to be inferior goes down.

Based on above explanation,correct answer is option c) Hamburgers are an inferior good for Will.

Answer is complete.Thank you!

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