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

Question

Use the following to answer questions:
Figure: The Consumption of Video Games and E-Books 
-(Figure: The Consumption of Video Games and E-Books) Look at the figure The Consumption of Video Games and E-Books. Which chart shows the effects of a decrease in income when video games are an inferior good and e-books are a normal good?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

When income decreases, the consumption of inferior goods like video games increases, while the consumption of normal goods like e-books decreases. Chart A would show this pattern.

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