Stefan consumes only cheese and crackers.
a) Could these both be inferior goods for Stefan? Explain.
b) Suppose that cheese is a normal good for Stefan while crackers is inferior. If the price of cheese falls, explain what happens to Stefan's consumption of both cheese and crackers.

Question

Quizplus · Accepted Answer

The Answer of Stefan consumes only cheese and crackers.
a) Could these both be inferior goods for Stefan? Explain.
b) Suppose that cheese is a normal good for Stefan while crackers is inferior. If the price of cheese falls, explain what happens to Stefan's consumption of both cheese and crackers.

Stefan Consumes Only Cheese and Crackers