The opportunity cost to the consumer of purchasing and consuming ...

[mspears3]

The opportunity cost to the consumer of purchasing and consuming one more unit of a good is called the marginal benefit.
 
  Indicate whether the statement is true or false

Question 2

Joe's monthly income increases from 1,000 to 2,000. As a result, he decreases the number of his fast food meals from 20 to 5 per month. To Joe, are fast-food meals a normal or an inferior good? What kind of elasticity can tell the answer? Explain.
 
  What will be an ideal response?

[ambernicolefink]

Answer to Question 1

FALSE

Answer to Question 2

Fast-food meals are an inferior good to Joe because his income elasticity of demand for fast-food meals is negative: as Joe's income increases, the quantity of fast-food meals he demands decreases.

[mspears3]

Wow, this really help

[alexanderhamilton]

Thanks for the timely response, appreciate it