Problem
1. What inferior goods do you purchase? Why do you buy them? Do you think you will continue to buy them when your income is higher?
2. John Q. Public spends all of his income on gasoline and hot dogs. Draw his budget line under several conditions:
a. His income is $100, and one gallon of gasoline and one hot dog each cost $2.
b. His income is $150, and the two prices remain the same.
c. His income is $100, hot dogs cost $2 each, and gasoline costs $2.50 per gallon.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.