The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19 pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is approximately -0.5. Given that rice is a good, the manager should stock rice. O A. normal: 109 more O B. inferior: 12.595 more O C. inferior: 12.59 less O D. normal: 12.596 less

The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19 pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice is approximately -0.5. Given that rice is a good, the manager should stock rice. O A. normal: 109 more O B. inferior: 12.595 more O C. inferior: 12.59 less O D. normal: 12.596 less

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.11P

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