if jack bought 18 cds last year when his income was $20,000 and he buys 19 cds this year when his income is…

if jack bought 18 cds last year when his income was $20,000 and he buys 19 cds this year when his income is $25,000, then cds are\nan inferior good.\na normal good.\na price - elastic good.\na price - inelastic good.\nthere is not enough information to answer this question.\nquestion 2\n1 pts\nwhen the cross - price elasticity of demand between two goods is _________, the goods are _________.\nnegative, substitutes\nnegative, complements\npositive, normal goods\npositive, inferior goods

if jack bought 18 cds last year when his income was $20,000 and he buys 19 cds this year when his income is $25,000, then cds are\nan inferior good.\na normal good.\na price - elastic good.\na price - inelastic good.\nthere is not enough information to answer this question.\nquestion 2\n1 pts\nwhen the cross - price elasticity of demand between two goods is _________, the goods are _________.\nnegative, substitutes\nnegative, complements\npositive, normal goods\npositive, inferior goods

Answer

Brief Explanations:

  1. For the first question, as Jack's income increased from $20,000 to $25,000 and the quantity of CDs he bought increased from 18 to 19, this indicates that as income rises, the demand for CDs rises, which is the characteristic of a normal good.
  2. For the second question, when the cross - price elasticity of demand between two goods is negative, it means that when the price of one good increases, the demand for the other good decreases. This is the case for complementary goods. For example, if the price of coffee rises, the demand for coffee creamer (a complement) may fall.

Answer:

Question 1: B. a normal good. Question 2: B. negative, complements