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(Solution document) Nice graduates from college, where she earned $16,000 a year working part-time, and takes a job as a third grade teacher, where she now earns...


Ms. Nice graduates from college, where she earned $16,000 a year working part-time, and takes a job as a third grade teacher, where she now earns $30,000 per year. After receiving her first paycheck, she gave away her bicycle and purchased a new car. Therefore,

a) bicycles are a normal good for Ms. Nice b) cars are a substitute good for Ms. Nice

c) cars are a normal good for Ms. Nice d) Ms. Nice is willing to pay a higher price for a car

 







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