-In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good.

Question

Quizplus · Accepted Answer

Compact discs are a normal good because as Brendan's income rises, he consumes more of them. Haircuts are an inferior good because as Brendan's income rises, he consumes less of them.

-In the Above Figure, as Brendan's Income Rises His Consumption