The consumer in the diagram above is initially at point B. His income decreases moving him to a new indifference curve at point A.
Which of the following is true?
a) good X is normal but good Y is inferior
b) good Y is normal but good X is inferior
c) both goods are normal
d) both are inferior
e) neither good is inferior
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Joanne consumes 5 burgers and purchases 2 pairs of shoes a month. Her income decreases by $300 and, as a result, she consumes 7 burgers and purchases 1 pairs of shoes. Which of the following is true?
The consumer in the diagram above is initially at point A. His income increases moving him to a new indifference curve at point B. Which of the following is true?