-In the above figure, Brendan originally consumes at point A. If his income falls and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as
A) E.
B) B.
C) G.
D) F.

Question

-In the above figure, Brendan originally consumes at point A. If his income falls and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as
A) E. 
B) B. 
C) G. 
D) F.

Quizplus · Accepted Answer

When income falls, consumption of normal goods like compact discs decreases, while consumption of inferior goods like haircuts increases. Point G reflects this change in consumption pattern.

-In the Above Figure, Brendan Originally Consumes at Point A If