-The above figure shows Larry's indifference map and budget lines for ham and pork.Which of the following statements is TRUE?
A) Larry's demand curve for pork shifts rightward when his income increases.
B) Larry's income elasticity of demand for pork is greater than zero.
C) Pork is a normal good.
D) All of the above.

Question

-The above figure shows Larry's indifference map and budget lines for ham and pork.Which of the following statements is TRUE?
A) Larry's demand curve for pork shifts rightward when his income increases. 
B) Larry's income elasticity of demand for pork is greater than zero. 
C) Pork is a normal good. 
D) All of the above.

Quizplus · Accepted Answer

All the statements are true if Larry's demand for pork increases with an increase in income, indicating that pork is a normal good and his income elasticity of demand for pork is positive.

-The Above Figure Shows Larry's Indifference Map and Budget Lines