"An increase in the price of apples caused Emily to spend less money on apples. This implies that she considers apples as normal good." True or false, why?
Ans: True
Explanation:
An increase in the price of apples caused Emily to spend less money on apples. It means demand for apple is elastic in nature in this case . As a result expenditure on the purchase of apple decreases when price increases. This will happened in case of normal goods.
"An increase in the price of apples caused Emily to spend less money on apples. This...