Ceteris paribus,if income increases and as a result,the demand for good X increases and the demand for good Y falls,
A)Good X is an inferior good and good Y is a normal good.
B)Good X is a normal good and good Y is an inferior good.
C)Goods X and Y are substitute goods.

Question

Quizplus · Accepted Answer

If income increases and the demand for good X increases while the demand for good Y falls, it suggests that good X is a normal good (as demand increases with income) and good Y is an inferior good (as demand falls with income).

Ceteris Paribus,if Income Increases and as a Result,the Demand for Good