Solved

Figure: Income and Substitution Effects

Question 114

Multiple Choice

Figure: Income and Substitution Effects
(Figure: Income and Substitution Effects) Look at the figure Income and Substitution Effects.Carlos is originally consuming his optimal consumption bundle at point A in the figure when the price of gasoline falls.As Carlos moves to his new optimal consumption bundle, we observe that gasoline:


A) is not an ordinary good.
B) is a normal good.
C) is an inferior good.
D) and good L are complements.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents