1) Christian and Clarabelle are college friends who each eat three packages of ramen noodles each week. After graduation last month, both were hired at several times their college income. Christian does enjoy ramen noodles very much and buys even more, but Clarabelle plans to buy fewer ramen noodles in fever of foods she prefers more. When looking at income elasticity of demand the ramen noodles, Christian would.

2)

Scenario 5-2 The supply of pickles is inelastic, and the supply of rice is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10 percent