Figure: The Consumption of Video Games and eBooks (Figure: The Consumption of Video Games and eBooks) Look at the figure The Consumption of Video Games and eBooks.Which chart in the figure shows the effects of a decrease in income when video games are an inferior good and eBooks are a normal good?
A)A
B)B
C)C
D)D

Question

Figure: The Consumption of Video Games and eBooks   (Figure: The Consumption of Video Games and eBooks) Look at the figure The Consumption of Video Games and eBooks.Which chart in the figure shows the effects of a decrease in income when video games are an inferior good and eBooks are a normal good?
A)A 
B)B 
C)C 
D)D

Quizplus · Accepted Answer

In graph A, the consumption of video games increases while the consumption of eBooks decreases, indicating that video games are an inferior good while eBooks are a normal good. If income decreases, consumers will shift their consumption towards inferior goods (in this case, video games) and away from normal goods (in this case, eBooks).

Figure: the Consumption of Video Games and EBooks