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(Figure: Fishing Charters and Parachute Jumps I) Francis Spends His

Question 26

Multiple Choice

(Figure: Fishing Charters and Parachute Jumps I) Francis spends his income on fishing charters and jumping out of airplanes. Which of the following statements is TRUE? (Figure: Fishing Charters and Parachute Jumps I)  Francis spends his income on fishing charters and jumping out of airplanes. Which of the following statements is TRUE?   A)  Fishing charters are an inferior good. B)  An increase in income could cause the optimal consumption bundle to move from point A to point B. C)  Parachute jumps are an inferior good. D)  An increase in the price of parachute jumps could cause the optimal consumption bundle to move from point A to point B.


A) Fishing charters are an inferior good.
B) An increase in income could cause the optimal consumption bundle to move from point A to point B.
C) Parachute jumps are an inferior good.
D) An increase in the price of parachute jumps could cause the optimal consumption bundle to move from point A to point B.

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