When deriving an Engel curve,if the optimum point for good X lies to the left as income increases,good X is
A) a normal good.
B) an inferior good.
C) a Giffen good.
D) a substitute for good Y.

Question

Quizplus · Accepted Answer

The optimum point for good X lying to the left as income increases means that as income increases, the demand for good X decreases. This is characteristic of an inferior good.

When Deriving an Engel Curve,if the Optimum Point for Good