Suppose that the market demand for burgers is given by QD = 100 P + Y, where P is the price of burger and Y is the consumers' income. Price for soft drinks is changes from $1.5 to $2.

Suppose that the pricefor burgers is fixed to 6 while consumers' income changes from 200 to 100 find the corresponding income elasticity of demand.

Answer these questions:

Is burger a normal good or inferior? Why?What is the difference?

Changes in the consumers' income can sometimes increase market demand for burgers. Explain.

Areburgers andsoft drink substitutes?Explain.