A consumer is currently consuming some of good X and some of good Y.If good Y is a normal good for this consumer,what will a rise in consumer income definitely cause
A)an increase in the consumption of X
B)an increase in the consumption of Y
C)a decrease in the consumption of X
D)a decrease in the consumption of Y

Question

Quizplus · Accepted Answer

A rise in consumer income will increase the consumer's purchasing power, and since good Y is a normal good, the consumer will increase their consumption of it. There is no clear relation between the rise in income and consumption of good X or any decrease in consumption. Therefore, the best choice is B, an increase in the consumption of Y.

A Consumer Is Currently Consuming Some of Good X and Some