The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19 pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is approximately -0.5. Given that rice is a good, the manager should stock rice. O A. normal: 109 more O B. inferior: 12.595 more O C. inferior: 12.59 less O D. normal: 12.596 less

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19
pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is
approximately -0.5. Given that rice is a
good, the manager should stock
rice.
O A. normal: 109 more
O B. inferior: 12.595 more
O C. inferior: 12.59 less
O D. normal: 12.596 less

 

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