-In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he will begin consuming at a point such as
A) F.
B) B.
C) C.
D) D.

Question

-In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he will begin consuming at a point such as
A) F. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

If income rises and both compact discs and haircuts are normal goods, then Brendan will consume more of both goods. This means that he will move to a point on a higher indifference curve, such as point C.

-In the Above Figure, Brendan Originally Consumes at Point A If