At a very basic level,food and shelter constitute the two most important goods needed to sustain human life.Accordingly,assume that a poor person must allocate his income solely between food and shelter.
a.Show that if shelter is an inferior good,food must be a normal good.
b.If food is a normal good,is shelter necessarily an inferior good?
Explain,and show your answer graphically.

Question

At a very basic level,food and shelter constitute the two most important goods needed to sustain human life.Accordingly,assume that a poor person must allocate his income solely between food and shelter.
a.Show that if shelter is an inferior good,food must be a normal good.
b.If food is a normal good,is shelter necessarily an inferior good?
 Explain,and show your answer graphically.

Quizplus · Accepted Answer

The Answer of At a very basic level,food and shelter constitute the two most important goods needed to sustain human life.Accordingly,assume that a poor person must allocate his income solely between food and shelter.
a.Show that if shelter is an inferior good,food must be a normal good.
b.If food is a normal good,is shelter necessarily an inferior good?
 Explain,and show your answer graphically.

At a Very Basic Level,food and Shelter Constitute the Two