Question

Done Quiz 2 20. (Problem 10a). For Norma, both nachos and salsa are normal goods. They are also ordinary goods for Norma. The price of nachos rises, but the price of salsa remains unchanged. Can you determine definitively whether she consumes more or fewer nachos? O A. We can say definitively that her consumption of nachos remains unchanged in response to the increase in the price of nachos. O B. We cannot say definitively what will happen to her consumption of nachos. c, we can say definitively that her consumption of nachos falls in response to the increase in the price of nachos O D. We can say definitively that her consumption of nachos rises in response to the increase in the price of nachos 20 of 100 11:29 PM Start: 11:00 PM ^細쉬 3/11/2013 O Type here to search

am I correct? if not, what's the correct answer and why? thanks

Answer 1

Option C.

Explanation: In the case of normal goods, the quantity demanded falls with a rise in the price and the quantity demanded rise with a fall in price. Nachos is a normal good for both the consumers. Therefore, we can definitely say that the quantity demanded of nachos will fall with a rise in its price.