-In the above figure, as Brendan's income falls his consumption bundle moves from point A to point
E. This implies that, for Brendan, compact discs are _______ good and haircuts are _______ good.
A) a normal; a normal
B) an inferior; an inferior
C) an inferior; a normal
D) a normal; an inferior

Question

-In the above figure, as Brendan's income falls his consumption bundle moves from point A to point
E. This implies that, for Brendan, compact discs are _______ good and haircuts are _______ good.
A) a normal; a normal 
B) an inferior; an inferior 
C) an inferior; a normal 
D) a normal; an inferior

Quizplus · Accepted Answer

As Brendan's income falls and he moves from point A to point E, if he buys more of one good and less of another, the good he buys more of is considered an inferior good (because he buys more of it as his income decreases), and the good he buys less of is considered a normal good (because he buys less of it as his income decreases).

-In the Above Figure, as Brendan's Income Falls His Consumption