Price Quantity Demanded Alfred $3.00 3 $5.00 1 Belinda $3.00 4 $5.00 2 Charissa

Question

Price

Quantity

Demanded

Alfred

$3.00

3

$5.00

1

Belinda

$3.00

4

$5.00

2

Charissa

$3.00

3

$5.00

x

____ 30. Refer to Table 4-3. Regarding Alfred and Belinda, for whom are sandwiches a normal good?

a.

for Alfred and for Belinda

b.

This cannot be determined from the given information.

c.

only for Bellinda

d.

only for Alfred

____ 31. Refer to Table 4-3. Regarding Alfred and Belinda, whose demand for sandwiches conforms to the law of demand?

a.

only Belinda’s

b.

only Alfred’s

c.

neither Alfred’s nor Belinda’s

d.

both Alfred’s and Belinda’s

Price

Quantity

Demanded

Alfred

$3.00

3

$5.00

1

Belinda

$3.00

4

$5.00

2

Charissa

$3.00

3

$5.00

x

Explanation / Answer

See, i think the table is incomplete Basic funda behind this question is: Normal good: , normal goods are any goods for which demand increases when income increases and falls when income decreases but price remains constant Giffen: a Giffen good is one which people paradoxically consume more of as the price rises, violating the law of demand So, now see the table properly, see if income increases , and if demand changes in same sign, it is normal good, opposite sign, then it is inferior/giffen good. the law of demand is an economic law that states that consumers buy more of a good when its price decreases and less when its price increases now see, how quantity demanded is changing with change in price from the table. u can easily find the ans. here table is insufficient, so cant help till the last ans. this should help. this is all u need to apply :)

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