1. Business
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  3. assume that there are only 2 goods z and y...

Question: assume that there are only 2 goods z and y...

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Assume that there are only 2 goods, z and y (a) Amanda spends $200 on r and $300 on y when her income is $500. She spends $180 on r and $420 on y when her income is $600. For this income change, characterize the type of each good (necessity, luxury, or inferior). (2) (b) Bill spends $6 on x and $10 on y when his income is $16. He spends $8 on x and $16 on y when his income is $24. For this income change, characterize the type of each good (necessity, luxury, or inferior). (2) (c) Charles spends $3200 on and $800 on y when his income is $4000. He spends $2800 on r and S600 on y when his income is $3400. For this income change, characterize the type of each good (necessity, luxury, or inferior). (2)

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