While in college,John and Bethany each buy five packages of mac-n-cheese per week.After they graduate and have full-time jobs,John buys six packages per week,but Bethany buys only two packages per week.When looking at income elasticity of demand for mac-n-cheese,John's
A)is negative,and Bethany's is positive.
B)is positive,and Bethany's is negative.
C)is zero,and Bethany's approaches infinity.
D)approaches infinity,and Bethany's is zero.

Question

Quizplus · Accepted Answer

John's income elasticity of demand is positive because he buys more mac-n-cheese when his income increases. Bethany's income elasticity of demand is negative because she buys less mac-n-cheese when her income increases.

While in College,John and Bethany Each Buy Five Packages of Mac-N-Cheese