Suppose that when income decreases from $800 to $400 a month…
Suppose that when income decreases from $800 to $400 a month, the quantity demanded for take outs dinners decreases from good 15 units to 10 meals a month. Which of the following statements can we make given this information? (Use the midpoint method to perform any computations you deemed necessary.)i. The good is a normal good.ii. The good is income inelastic.iii. The good is a necessity good.