Problem
Brady, who has ordinary-shaped indifference curves, buys 16 ounces of salt each year. Even when the price of salt doubles, Brady continues to purchase exactly 16 ounces.
a. True or False (and explain): Salt is neither inferior nor normal to Brady.
b. What is Brady's price elasticity of demand for salt?
c. What can we say about Brady's income elasticity of demand for salt?
d. What can we say about the substitution and income effects of a change in the price of salt?
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.