You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles,....
a. yours would be positive and your roommate's would be negative.
b. yours would approach infinity and your roommate's would be zero.
c. yours would be zero and your roommate's would approach infinity.
d. yours would be negative and your roommate's would be positive.
I say A
a. yours would be positive and your roommate's would be negative.
b. yours would approach infinity and your roommate's would be zero.
c. yours would be zero and your roommate's would approach infinity.
d. yours would be negative and your roommate's would be positive.
I say A