Refer to the accompanying figure.
Suppose that James' initial budget constraint shifts from BC1 to BC2, and as a result, his best affordable bundle moves from point A to point B. According to this figure:
A)spinach is an inferior good.
B)potatoes are an inferior good.
C)spinach and potatoes are substitutes.
D)spinach and potatoes are complements.

Question

Refer to the accompanying figure.  
  Suppose that James' initial budget constraint shifts from BC1 to BC2, and as a result, his best affordable bundle moves from point A to point B. According to this figure:
A)spinach is an inferior good. 
B)potatoes are an inferior good. 
C)spinach and potatoes are substitutes. 
D)spinach and potatoes are complements.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying figure.  
  Suppose that James' initial budget constraint shifts from BC1 to BC2, and as a result, his best affordable bundle moves from point A to point B. According to this figure:
A)spinach is an inferior good. 
B)potatoes are an inferior good. 
C)spinach and potatoes are substitutes. 
D)spinach and potatoes are complements.

Refer to the Accompanying Figure