[Solution] Joanne consumes 5 burgers and purchases 2…

Changes in Income

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Joanne consumes 5 burgers and purchases 2 pairs of shoes a month. Her income decreases by $300 and, as a result, she consumes 7 burgers and purchases 1 pairs of shoes. Which of the following is true?

 a) To Joanne, burgers are inferior and shoes are normal 

 b) To Joanne, burgers are normal and shoes are inferior 

 c) To Joanne, both goods are normal 

 d) To Joanne, both goods are inferior 

I don't know

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The consumer in the diagram above is initially at point A. His income increases moving him to a new indifference curve at point B. Which of the following is true?

The consumer in the diagram above is initially at point B. His income decreases moving him to a new indifference curve at point A.
Which of the following is true?

Joanne consumes 5 burgers and purchases 2 pairs of shoes a month. Her income de…

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