Question: Hi, I'd like to ask how to solve this question? Thank you!! 5. Naomi and Rafa win the Australia Tennis Open and received 4.1 million

Hi, I'd like to ask how to solve this question? Thank you!!

Hi, I'd like to ask how to solve this question? Thank you!!

5. Naomi and Rafa win the Australia Tennis Open and received 4.1 million as a prize. Imagine that this prize translates into a 2 % increase in their incomes and that they consume headbands and physical therapy (PT) sessions. Rafa increases his consumption of headbands by 1% but Naomi decreases her con- sumption of headbands by 1%. They both increase their consumption of PT. Rafa increases PT consumption by 3% and Naomi by 2%. Select the correct statement: (a) PT is a normal good both for Naomi and Rafa. Headbands are an inferior good for Rafa and a normal good for Naomi (b) PT is a luxury for Rafa and a normal good for Naomi. Headbands are an inferior good for Rafa and a normal good for Naomi (c) PT is a luxury good both for Naomi and Rafa. Headbands are an inferior good for Rafa and a normal good for Naomi (d) PT is a normal good for Rafa and a normal good for Naomi. Headbands are a luxury good for Rafa and a normal good for Naomi (e) *PT is a luxury for Rafa and a normal good for Naomi. Headbands are a normal good for Rafa and an inferior good for Naomi

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