The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.Good X is a(an)___________ good and thus cannot be a _________ good.
A)normal; Giffen
B)inferior; Giffen
C)substitute; Giffen
D)Giffen; normal
E)Giffen; substitute

Question

The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.Good X is a(an)___________ good and thus cannot be a _________ good. 
A)normal; Giffen 
B)inferior; Giffen 
C)substitute; Giffen 
D)Giffen; normal 
E)Giffen; substitute

Quizplus · Accepted Answer

The Answer of The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.Good X is a(an)___________ good and thus cannot be a _________ good. 
A)normal; Giffen 
B)inferior; Giffen 
C)substitute; Giffen 
D)Giffen; normal 
E)Giffen; substitute

The Following Figure Shows a Portion of a Consumer's Indifference