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In: Economics

Bernie Sanders, who has ordinary-shaped (convex) indifference curves, spends his income on prune juice and all...

Bernie Sanders, who has ordinary-shaped (convex) indifference curves, spends his income on prune juice and all other goods. He buys 10 gallons of prune juice each month. Even when the price of prune juice doubles, Bernie continues to purchase exactly 10 gallons.

1. True, false, or uncertain: Prune juice is a normal good for Bernie. You must include both verbal and graphical analysis in your response.

Solutions

Expert Solution

This statement is false. Prune juice is not a normal good in this case.

Rahul Sunny answered 1 year ago
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