Three years after graduating from college, you get a promotion and a 16 percent raise. Your consumption habits change accordingly. (For all the calculations below round your answer to two decimal places, and enter a "-" if your answer is negative.)
Suppose your consumption of frozen hot dogs has reduced by 88 percent. Your income elasticity of demand is . Thus, we can say that a frozen hot dog is a(n) (normal good/ inferior good/ luxury good).

-5.5%

Inferior good.

Explanation:

• Income elasticity of demand = % change in quantity demanded / % change in income

= -88% / 16℅

= - 5.5%

• From the calculation above, frozen hot dog is an inferior good. An inferior good is a good which an increase in income will lead to a reduction in quantity demanded. An inferior good as a negative income elasticity of demand and is of low quality and usually purchased as a result of its affordability by low income earners.

answer; (c) run the name by everyone you can;

reducing the scale of the market for a new product.