Mary makes the following choices of X1 and X2 when prices and income are as follows: X1 X2 P1 P2 IWeek 1 10 20 2 1 40Week 2 6 14 2 2 40 A.Mary considers both goods to be normal goods B.We cannot say whether Mary thinks the goods are normal or inferior. C.X1 is a normal good and X2 is an inferior good for Mary D.X1 is an inferior good and X2 is a normal for Mary Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.

Income refers to the money or financial gain that an individual, household, business, or entity…

Answered: Mary makes the following choices of X1…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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Mary makes the following choices of X₁ and X₂ when prices and income are as follows:

X₁ X₂ P₁ P₂ I

Week 1 10 20 2 1 40

Week 2 6 14 2 2 40

	A.	Mary considers both goods to be normal goods
	B.	We cannot say whether Mary thinks the goods are normal or inferior.
	C.	X₁ is a normal good and X₂ is an inferior good for Mary
	D.	X₁ is an inferior good and X₂ is a normal for Mary

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

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