Jess is an artist and spends all of her income on pen and pencils. Pen costs $4 per piece and pencil costs $2 per piece. If Jess' budget is $50 per week, she purchases 5 pens and 15 pencils. If her budget rises to $80 per week, she buys 15 pens and 10 pencils. Which of the following statements is true? Both pens and pencils are normal goods. O Both pens and pencils are inferior goods, O Pen is a luxury good. Pencil is a luxury good.
Jess is an artist and spends all of her income on pen and pencils. Pen costs $4 per piece and pencil costs $2 per piece. If Jess' budget is $50 per week, she purchases 5 pens and 15 pencils. If her budget rises to $80 per week, she buys 15 pens and 10 pencils. Which of the following statements is true? Both pens and pencils are normal goods. O Both pens and pencils are inferior goods, O Pen is a luxury good. Pencil is a luxury good.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 5SQP
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Transcribed Image Text:Jess is an artist and spends all of her income on pen and pencils. Pen costs $4 per piece and pencil
costs $2 per piece. If Jess' budget is $50 per week, she purchases 5 pens and 15 pencils. If her
budget rises to $80 per week, she buys 15 pens and 10 pencils. Which of the following statements is
true?
Both pens and pencils are normal goods.
O Both pens and pencils are inferior goods,
O Pen is a luxury good.
O Pencil is a luxury good.
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