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Due to the recent downturn in economic activity, Taz, has seen his hours at work reduced. He used to work 30 hours a week at $13 and hour, but now he works 22 hours.
Due to this change he noticed he purchased more boxed Macaroni and Cheese, up from 1 box a week to 4. He also reduced his purchase of Coke from 2 12-packs to 1 12-pack per week.
i) What is the income elasticity of macaroni and cheese for Taz?
ii) What type of good is Macaroni and cheese for Taz?
iii) What is the income elasticity of Coke for Taz?
iv) What type of good is Coke for Taz?
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