Sarah Gets a Salary Increase

Sarah gets a salary increase. Before her raise, she purchased 5 pounds of fish and 1 pound of beef stew a month. After her raise, she consumes 2 pounds of fish and 3 pounds of beef stew a month. If everything else is held constant, we know that

A) fish is an inferior good and beef stew is a normal good for Sarah.
B) fish is a normal good and beef stew is an inferior good for Sarah.
C) both fish and beef stew are normal goods for Sarah.
D) both fish and beef stew are inferior goods for Sarah.

Correct Answer:

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