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Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese.
-(Figure: Harold's Indifference Curves) Look at the figure Harold's Indifference Curves. Given that the price of bread is $1 per loaf and the price of cheese is $2 per pound, as Harold's income increases from $10 to $14, we can determine that bread is a(n) _____ good and cheese is a(n) _____ good.
A) inferior; inferior
B) normal; inferior
C) inferior; normal
D) normal; normal

Question

Use the following to answer questions:
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese. 
-(Figure: Harold's Indifference Curves) Look at the figure Harold's Indifference Curves. Given that the price of bread is $1 per loaf and the price of cheese is $2 per pound, as Harold's income increases from $10 to $14, we can determine that bread is a(n) _____ good and cheese is a(n) _____ good.
A) inferior; inferior 
B) normal; inferior 
C) inferior; normal 
D) normal; normal

Quizplus · Accepted Answer

As Harold's income increases, he can afford more of both goods, indicating that both bread and cheese are normal goods.

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