As the economy emerged from the most recent recession, household income rose by 6 percent. over the same period, total expenditures on beef increased by 3 percent. assuming that all other economic variables were held constant, a. the income elasticity of demand must be equal to 2. b. beef must be a normal good. c. beef must be an inferior good. d. both a and b are correct.

The correct answer is option B.

Explanation:

An economy is recovering from the recession.  

It's household income rose by 6 percent.  

During the same period, the total expenditure on beef increased by 3 percent.  

This indicates that beef is a normal good.  

A normal good is a type of good which has positive income elasticity. In other words, its demand increases with an increase in income and vice versa.  

The income elasticity of demand for beef

=

=

= 0.5

The income elasticity of demand for beef is 0.5.

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself

answer; ///product strategy;