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Spam Sales Rise as Food Costs Soar
Sales of Spam-that much maligned meat-are rising as consumers are turning more to lunch meats and other lower-cost foods to extend their already stretched food budgets. ... Consumers are quick to realize that meats like Spam and other processed foods can be substituted for costlier cuts as a way of controlling costs.
a. Is Spam a normal good or inferior good? Explain.
b. Would the income elasticity of demand for Spam be negative or positive? Explain.
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