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QUESTION 8 Brendan graduates from UQ with a Bachelors Degree in Economics. He immediately gets a job after graduating and decides to buy a second
QUESTION 8 Brendan graduates from UQ with a Bachelors Degree in Economics. He immediately gets a job after graduating and decides to buy a second hand car. He has always wanted a car and now has the income to afford it. 10 years later, Brendan earns triple his starting salary and decides to sell his second hand car and buy an Alfa Romeo. Which of the following statements is true? O 10 years after purchasing it, the second hand car is a normal good. O The second hand car is always an inferior good because it is much cheaper than the Alfa Romeo. The second hand car is initially a normal good for Brendan when he gets a job after graduating, but then becomes an inferior good as Brendan's income rises. O The Alfa Romeo is a compliment for Brendan's second hand car. O The Alfa Romeo is both a normal and an inferior good for Brendan
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