Ask Question
24 August, 03:24

Danita rescues dogs from her local animal shelter. When danita's income rises by 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For danita, the income elasticity of demand for dog biscuits is

a. Negative, and dog biscuits are an inferior good.

b. Negative, and dog biscuits are a normal good.

c. Positive, and dog biscuits are an inferior good.

d. Positive, and dog biscuits are a normal good.

+4
Answers (1)
  1. 24 August, 06:25
    0
    Answer: d. Positive, and dog biscuits are a normal good.

    Explanation:

    Normal goods are goods that are positively related with income and negatively related with prices. While, inferior goods are those goods which are negatively related with income. When demand for dog biscuits rises as a result of a rise in income, it shows that dog biscuits are a normal good for Danita. Therefore, we can say for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits are a normal good.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Danita rescues dogs from her local animal shelter. When danita's income rises by 7 percent, her quantity demanded of dog biscuits increases ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers