Figure 3A -Which of the following is true about the goods in Figure 3A? A)x₁is an inferior and x₂is a normal good. B)x₁is a normal and x₂is an inferior good. C)Both x₁and x₂are normal goods. D)Both x₁and x₂are inferior goods.

Question

Quizplus · Accepted Answer

Normal goods are those for which demand increases as the income of the consumer increases. Without seeing Figure 3A, the correct answer cannot be determined based on the provided choices alone. However, if the statement in option C is considered true, it implies that for both goods, as consumer income increases, the demand for these goods also increases, which is the definition of normal goods.

Figure 3A -Which of the Following Is True About the Goods in the Goods