a. My income decreased by 25% and I purchased 10% more Cheez-Its. What is my income elasticity of demand for Cheez-its? Are Cheez-Its a luxury, normal, or inferior good in this case? Show your work to receive full credit.
b. I walked into Harris Teeter willing to purchase 8 bottles of apple juice at $3 each. However, Harris Teeter had their apple juice priced at $4 a bottles. I ended up purchasing 6 bottles of apple juice. Calculate the price elasticity of demand and state whether my price elasticity of demand for apple juice is elastic, unit elastic, or inelastic. Show your work to receive full credit.