Question
A recent survey of households in Violet Town revealed the following information. Over the last year, the income of consumers who like to paint increased
A recent survey of households in Violet Town revealed the following information.
Over the last year, the income of consumers who like to paint increased by 3%, while the income of people who like to draw increased by 2%. Simultaneously, the quantity of sketchbooks demanded by painters increased by 2.5%, ceteris paribus and the quantity of sketchbooks demanded by drawers increased by 2.5%, ceteris paribus.
Based on these observations, which one of the following statements is TRUE?
a)Sketchbooks are a necessity for painters and a luxury for drawers.
b)Sketchbooks are an inferior good to painters and a luxury for drawers.
c)Sketchbooks are a luxury for painters and an inferior good for drawers.
d) Sketchbooks are a necessity for both painters and drawers.
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