Last year,Max bought 6 pairs of athletic shoes when his income was $35,000.This year,his income is $42,000,and he purchased 8 pairs of athletic shoes.Holding other factors constant,it follows that Max
A)considers athletic shoes to be necessities.
B)considers athletic shoes to be inferior goods.
C)considers athletic shoes to be normal goods.
D)has a low price elasticity of demand for athletic shoes.

Question

Quizplus · Accepted Answer

Max's increase in income has led to a corresponding increase in the quantity demanded of athletic shoes, indicating that they are a normal good. The fact that he purchased more pairs while his income increased suggests that he has a moderate to high price elasticity of demand for athletic shoes. It is not possible to determine whether he considers them to be necessities or inferior goods from the given information.

Last Year,Max Bought 6 Pairs of Athletic Shoes When His