Data collected in San Francisco reveals that a 5% decrease in income leads to the following changes: (1) a 4% increase in the quantity demanded of Muni bus rides. (2) a 3% decrease in the quantity demanded of marijuana. (3) a 13% decrease in the quantity demanded of San Francisco Giants tickets. The income elasticity of San Francisco Giants tickets is _______.

Data collected in San Francisco reveals that a 5% decrease in income leads to the following changes: (1) a 4% increase in the quantity demanded of Muni bus rides. (2) a 3% decrease in the quantity demanded of marijuana. (3) a 13% decrease in the quantity demanded of San Francisco Giants tickets. The income elasticity of San Francisco Giants tickets is _______.

Data collected in San Francisco reveals that a 5% decrease in income leads to the following changes: 

(1) a 4% increase in the quantity demanded of Muni bus rides.
(2) a 3% decrease in the quantity demanded of marijuana.
(3) a 13% decrease in the quantity demanded of San Francisco Giants tickets.

1. The income elasticity of San Francisco Giants tickets is _______.



A. 2.6

B. 1.67

C. 0.38

D. 0.6

E. -0.6

F. -2.6


Answer Key: A



2. Based on the information above, Muni bus rides are considered a(n) ________ and marijuana is considered a(n) _______.



A. inferior good; normal good

B. normal good; inferior good

C. normal good; normal good

D. inferior good; inferior good


Answer Key: A

3. Based on the information above, which of the following goods is most likely to be considered a luxury good?



A. San Francisco Giants tickets

B. marijuana

C. Muni bus rides


Answer Key: A