When her income increased from $10,000 to $20,000, Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and her consumption of soy-burgers increased from 2 pounds to 4 pounds. We can conclude that for Heather, macaroni

is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1.

Explanation:

The options to this question wasn't provided. Here are the options:

a.

and soy-burgers are both normal goods with income elasticities equal to 1.

b.

is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1.

c.

is an inferior good and soy-burgers are normal goods; both have income elasticities of 1.

d.

and soy-burgers are both inferior goods with income elasticities equal to -1.

An inferior good is a good whose demand increases when income falls and whose demand falls when income rises.

Inferior goods have an inverse relationship with income.

From the question, we can see that Heathers demand for macaroni fell when her income increased, so macaroni is am inferior good.

A normal good is a good whose demand increases when income increases and falls when income falls.

A normal good has a direct relationship with income

From the question, we can see that Heathers demand for soybeans fell when her income increased, so soybeans is a normal good.

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Income elasticity of demand = percentage change in quantity demanded / percentage change in income

Percentage change in quantity demanded for macaroni = (10-5) / 10 = 0.5 × 100 = 50%

Percentage change in quantity demanded for soybeans = (4-2)/2 = 1 × 100 = 100%

Percentage change in income = ($20,000 - $10,000) / $10,000 = 1 × 100 = 100%

Income elasticity of demand for macaroni = 50% / 100% = 0.5

Income elasticity of demand for soybeans = 100% / 100% = 1

Macaroni had an inelastic demand because it's coefficient of elasticity is less than one.

Soybeans has an elasticity equal to one because its coefficient of elasticity is equal to one.

I hope my answer helps you

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